In October, Nicole 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 spa kit. Feeling she could manage a single product line, Nicole agreed. Nicole’s Getaway Spa (NGS) would make monthly purchases from the supplier at a cost that included production costs and a transportation charge. NGS would keep track of its new inventory using a perpetual inventory system.
On December 31, NGS purchased 15 units at a total cost of $6.60 per
unit. Nicole purchased 20 more units at $8.20 in February. In
March, Nicole purchased 10 units at $10.20 per unit. In May, 40
units were purchased at $10.00 per unit. In June, NGS sold 40 units
at a selling price of $12.20 per unit and 35 units at $10.20 per
unit.
Compute the Cost of Goods Available for Sale, Cost of Goods Sold, and Cost of Ending Inventory using the first-in, first-out (FIFO) method. (Round "Cost per Unit" to 2 decimal places.)
Answer
--Requirement, as asked.
FIFO (Perpetual) |
Units |
Cost per unit |
Total |
Beginning Inventory |
15 |
$ 6.60 |
$ 99.00 |
Purchases: |
|||
Feb |
20 |
$ 8.20 |
$ 164.00 |
March |
10 |
$ 10.20 |
$ 102.00 |
May |
40 |
$ 10.00 |
$ 400.00 |
Net Purchases |
70 |
$ 666.00 |
|
Goods Available for Sales |
85 |
$ 765.00 |
|
Cost of Goods Sold: |
|||
Units from Beginning Inventory |
15 |
$ 6.60 |
$ 99.00 |
Units from Feb Purchase |
20 |
$ 8.20 |
$ 164.00 |
Units from Mar Purchase |
10 |
$ 10.20 |
$ 102.00 |
Units from May Purchase |
30 |
$ 10.00 |
$ 300.00 |
Total Cost of Goods Sold |
75 |
$ 665.00 |
|
Ending Inventory |
10 |
$ 100.00 |
In October, Nicole eliminated all existing inventory of cosmetic items. The trouble of ordering and tracking...
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Required information In October, Nicole 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 spa kit. Feeling she could manage a single product line, Nicole agreed. Nicole's Getaway Spa (NGS) would make monthly purchases from the supplier at a cost that included production costs and a transportation charge. NGS would keep track of its new...
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(b) LIFO, (c) weighted average, and (d) specific identification.
For specific identification, units sold consist of 600 units from
beginning inventory, 380 from the February 10 purchase, 120 from
the March 13 purchase, 130 from the August 21 purchase, and 205
from the September 5 purchase. (Round your average cost per unit to
2 decimal places.)
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Nicole's Getaway Spa (NGS) has been so successful that Nicole has
decided to expand her spa by selling merchandise. She sells things
such as nail polish, at-home spa kits, cosmetics, and aromatherapy
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Aug.
2
Sold a bundle of spa services with...
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