Question

Samuelson and Messenger (S&M) began 2018 with 300 units of its one product. These units were purchased near the end of 2017 for $22 each. During the month of January, 150 units were purchased on January 8 for $25 each and another 260 units were purchased on January 19 for $27 each. Sales of 135 units and 170 units were made on January 10 and January 25, respectively. There were 405 units on hand at the end of the month. S&M uses a perpetual inventory system. Required: 1. Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO method. 2. Complete the below table to calculate ending inventory and cost of goods sold for January using average cost method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO method. Cost of Goods Available for cost of Goods Sold - January 10 Cost of Goods Sold - January 25 Inventory Balance Perpetual FIFO of cost per units unit units Cost of Goods Available for Sale S 0 Cost per unit Cost of Goods Sold of units sold Cost per unit Cost per unit Ending Inventory Cost of of units Goodsin ending Sold Inventory $ 0 Beg. Inventory S 0.00 $ 0 $ 0.00 $ 0.00 $ Purchases January 8 January 19 0.00 0 0.00 0.00 0 0. 00 0 0.00 0 TOS 00S 0S 0 0.00 Required 2 >

Answer 1

Samuelson & Messenger (S&M)
Perpetual Inventory System
Perpetual FIFO
	Cost of goods available for sale				Cost of goods sold - Jan 10				Cost of goods sold - Jan 25				Ending Inventory
Date	# of units	Cost per unit	COGAFS		# of units sold	Cost per unit	COGS		# of units sold	Cost per unit	COGS		Quantity	Cost per unit	Inventory
Beg Inv	300	$             22.00	$    6,600.00		135	$                     22.00	$    2,970.00		165	$            22.00	$    3,630.00		-	$            22.00	$                 -
Purchases
8-Jan	150	$             25.00	$    3,750.00						5	$            25.00	$        125.00		145	$            25.00	$    3,625.00
19-Jan	260	$             27.00	$    7,020.00										260	$            27.00	$    7,020.00
Totals	710		$ 17,370.00		135		$    2,970.00		170		$    3,755.00		405		$ 10,645.00
													-		-
Perpetual Average
	Ending Inventory				Cost of goods sold
Date	# of units	Cost per unit	Inventory		# of units sold	Avg Cost per unit	COGS		Calculation
Beg Inv	300	$             22.00	$    6,600.00
Pur - 8 Jan	150	$             25.00	$    3,750.00
Subtotal	450	$             23.00	$ 10,350.00						=$10,350/ 450 units
Sale - 10 Jan	135	$             23.00	$    3,105.00		135	$                     23.00	$    3,105.00
Subtotal	315	$             23.00	$    7,245.00
Pur - 19 Jan	260	$             27.00	$    7,020.00
Subtotal	575	$             24.81	$ 14,265.00						=$14,265/ 575 units
Sale - 25 Jan	170	$             24.81	$    4,217.48		170	$                     24.81	$    4,217.48
Totals	405	$             24.81	$ 10,047.52		305		$    7,322.48