Question

Samuelson and Messenger (SAM) began 2021 with 250 units of its one product. These units were purchased near the end of 2020 for $20 each. During the month of January, 125 units were purchased on January 8 for $23 each and another 250 units were purchased on January 19 for $25 each. Sales of 200 units and 150 units were made on January 10 and January 25, respectively. There were 275 units on hand at the end of the month. SAM uses a perpetual inventory system.

Required:
1. Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO.
2. Complete the below table to calculate ending inventory and cost of goods sold for January using average cost.
  

Perpetual FIFO Cost of Goods Available for Sale Cost of Goods Sold - January 10 Cost of Goods Sold - January 25 Inventory Balance # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beg. Inventory $0 $0.00 $0 $0.00 $0 $0.00 $0 Purchases: January 8 0 0.00 0 0.00 0 0.00 0 January 19 0 0.00 0 0.00 0 0.00 0 Total 0 $0 0 $0 0 $0 0 $0

	Perpetual Average Inventory on hand Cost of Goods Sold # of units Cost per unit Inventory Value # of units sold Avg. Cost per unit Cost of Goods Sold Beginning Inventory $0 Purchase - January 8 0 Subtotal Average Cost 0 0 Sale - January 10 0 Subtotal Average Cost 0 0 Purchase - January 19 0 Subtotal Average Cost 0 0 Sale - January 25 0 Total 0 $0 0 $0

Answer 1

Answer is given below in required format

FIFO Average Cost method $6,422 $7,703 Ending Inventory Cost of Goods sold $6,825 $7,300 FIFO method with Perpetual inventory Perpetual FIFO Cost of Goods available for Sale Cost of Cost per Goods # of Units COGS- January 10th Cost of Unit Unit Available # of Units Cost per Goods # of Units Cost per Sold 250 125 $20.00 $23.00 for Sale $5,000 $2,875 Opening balance Purchase Jan-08 Sale Jan-10 Purchase Jan-19 COGS- January 25th Inventory Balance # of Units Cost of Total Cost in Cost per Ending Goods of Goods Unit Ending Unit Inventory Sold Sold Inventory 250 $20.00 $5,000 250 $20.00 $5,000 125 $23.00 $2,875 $4,000 50 $20.00 $1,000 125 $23.00 $2,875 50 $20.00 $1,000 125 $23.00 $2,875 250 $25.00 $6,250 50 $20.00 $1,000 25 $23.00 $575 100 $23.00 $2,300 $3,300 250 $25.00 $6,250 $3,300 $7,300 275 $6,825 200 $20.00 $4,000 250 $25.00 $6,250 Sale Jan-25 $4,000 Closing balance Opening stock Add: Purchase $5,000 $9,125 $14,125 $6,825 $7,300 Less: Closing stock Cost of Goods sold Average Cost method with Perpetual inventory Perpetual Average Opening balance Purchase- January 8 Subtotal Average cost Sale- January 10 Subtotal Average cost Purchase- January 19 Subtotal Average cost Sale- January 25 Total Inventory on Hand Cost of Goods Sold Cost of Average Cost of Cost per Goods # of Units # of Units Cost per Goods Unit Available unit Sold for Sale 250 $20.00 $5,000 125 $23.00 $2,875 375 $21.00 $7,875 200 $21.00 $4,200 175 $21.00 $3,675 250 $25.00 $6,250 425 $23.35 $9,925 150 $23.35 $3,503 275 $23.35 $6,422 350 $7,703 Opening stock Add: Purchase $5,000 $9,125 $14,125 $6,422 $7,703 Less: Closing stock Cost of Goods sold