Question

Samuelson and Messenger (S&M) began 2018 with 340 units of its one product. These units were purchased near the end of 2017 for $22 each. During the month of January, 170 units were purchased on January 8 for $25 each and another 340 units were purchased on January 19 for $27 each. Sales of 185 units and 240 units were made on January 10 and January 25, respectively. There were 425 units on hand at the end of the month. S&M uses a periodic inventory system. Required: 1. Calculate ending inventory and cost of goods sold for January using FIFO. 2. Calculate ending inventory and cost of goods sold for January using average cost. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate ending inventory and cost of goods sold for January using FIFO. Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Ending Inventory- Periodic FIFO FIFO Cost of Goods Available for Sale #of units # of units sold Cost per unit Cost per Cost of Ending Inventory Cost per unit in ending inventory # of units Goods Sold unit 0.00 $ Beginning Inventory Purchases: $ 0 0.00 0 0 0 0 0.00 0.00 0 January 8 0.00 0 0 0.00 0 January 19 $ 0 $ 0 0 0 $ Total 0 <Required 1 Required 2

Answer 1

Solution 1:

F G Н K\ М 3 Computation of ending inventory and cost of goods sold under Periodic FI FO c) periodic FIFO Cost of goods sold Goods Available for sale Ending Inventory 5 Ending No. of Units Cost Per Cost of Goods Cost per Ending Inventory Cost of Goods No. of Units Cost Per unit 6 Inventory sold Available for Sale sold unit unit Cost Units 340 Beginning Inventory Purchases: 340 $22.00 $7,480.00 $22.00 $7,480.00 7 0 8 $25.00 $2,125.00 $25.00 $25.00 $4,250.00 $2,125.00 8-Jan 170 85 85 340 $27.00 $9,180.00 $27.00 $9,180.00 10 19-Jan 340 11 $9,605.00 Total $20,910.00 $11,305.00 425 12 425 850 13 14 15 16 17 18 19 20 21 22 23 24 25 119 (12) Sheet146 (7) Sheet119 (6) Sheet467 Sheet468 Sheet469 Sheet445 Sheet446

Solution 2:

E G M N 35 36 Computation of ending inventory and cost of goods sold under weighted average method (b ) Weigheted Average 37 Goods Available for sale Cost of goods sold Ending Inventory Ending No. of Units Average Cost of Goods Average Ending Inventory Cost of Goods No. of Units Cost Per unit 38 Inventory Available for Sale sold sold Cost Cost Cost Units Beginning Inventory Purchases: $22.00 $7,480.00 39 340 40 $25.00 $4,250.00 $9,180.00 41 170 8-Jan 340 $27.00 42 19-Jan 43 24.60 $10,455.00 44 $20,910.00 425 425 $10,455.00 Total 24.60 850 24.60 45 46 47 48 49 50 51 52 53 54 55 56 57 58 119 (12) Sheet146 (7) Sheet119 (6) Sheet467 Sheet468 Sheet469 Sheet445 Sheet446