Samuelson and Messenger (S&M) began 2013 with 270 units of its one product. Thes

Question

Samuelson and Messenger (S&M) began 2013 with 270 units of its one product. These units were purchased near the end of 2012 for $24 each. During the month of January, 135 units were purchased on January 8 for $27 each and another 270 units were purchased on January 19 for $29 each. Sales of 130 units and 170 units were made on January 10 and January 25, respectively. There were 375 units on hand at the end of the month. S&M uses a perpetual inventory system. Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO method.

And

Complete the below table to calculate ending inventory and cost of goods sold for January using average cost method. (Round your cost per unit to 2 decimal places and other answers to nearest whole number.)

Complete the below table to calculate ending inventory and cost of goods sold for January using average cost method. (Round your cost per unit to 2 decimal places and other answers to nearest whole number.)

Explanation / Answer

Perpetual Average Perpetual Average Using FIFO Method 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 270 24 6480 Purchase - January 8 135 27 3645 Sale - January 10 130 24 3120 Purchase - January 19 270 29 7830 Sale - January 25 140 24 3360 30 27 810 Ending Inventory 105 27 2835 270 29 7830 375 10665 Using Avg Cost Method 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 270 24 6480 Purchase - January 8 135 27 3645 Subtotal Average Cost 405 25 10125 Sale - January 10 130 25 3250 Subtotal Average Cost 275 25 6875 Purchase - January 19 270 29 7830 Subtotal Average Cost 545 26.98 14705 Sale - January 25 170 26.98 4586.6 Ending Inventory 375 26.98 10118.4

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