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In October 2017, Nicole of Nicole's Getaway Spa (NGS) eliminated all existing inventory of cosmetic items. The trouble of ordering and tracking each product line
In October 2017, Nicole of Nicole's Getaway Spa (NGS) eliminated all existing inventory of cosmetic items. The trouble of ordering and tracking each product line had exceeded the profits earned. In December, a supplier asked her to sell a prepackaged spakit. Feeling she could manage a single product line, Nicole agreed. NGS would make monthly purchases from the supplier at a cost that included production costs and a transportation charge. The spa would use a perpetual inventory system to keep track of its new inventory On December 30, 2017, NGS purchased ten units at a total cost of $700 per unit. NGS purchased thirty more units at $9.00 in February 2018, but returned five defective units to the supplier in March, NGS purchased fifteen units at $11.00 per unit. In May, fifty units were purchased at $11.00 per unit; however, NGS took advantage of a 2.00/10, 1/30 discount from the supplier. In June. NGS sold fifty units at a selling price of $12.90 per unit and thirty-five units at $10.90 per unit. 2. Compute the Cost of Goods method. (Do not round interme Cost of goods available for sale Cost of goods sold Cost of ending inventory $ $ $
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