Samuelson and Messenger (S&M;) began 2018 with 360 units of its one product. The

Question

Samuelson and Messenger (S&M;) began 2018 with 360 units of its one product. These units were purchased near the end of 2017 for $25 each. During the month of January, 180 units were purchased on January 8 for $28 each and another 360 units were purchased on January 19 for $30 each. Sales of 140 units and 260 units were made on January 10 and January 25, respectively. There were 500 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 average cost method. (Round your cost per unit to 2 deial places and other answers to nearest whole number. Enter inventory reductions from sales as negative numbers.) Inventory on hand Cost of Goods Sold rpetual Average # of units | Cost per unit | Inventory Value | # of units Avg. Cost per Cost of sold unit Goods Sold Beginning Inventory Purchase - January 8 Sublotal Average Cost Sale - January 10 Subtotal Average Cost Purchase - January 19 Subtotal Average Cost Sale - January 25 Total 360 $ 2500 S9.000 180 540 28.00 26.00 5,040 14,040 540 360 900 14.040 10,800 24.840 30.00 1.400 S 24,840 Required 1

Explanation / Answer

1 average cost method Perpectual average Inventory on hand Cost of goods sold # of units Cost per unit $ Inventory value $ # of units Avg.Cost per unit $ Inventory value $ Beginning inventory                        360                             25                     9,000 Purchase-January 8                        180                             28                     5,040 Subtotal average cost                        540                             26                   14,040 Sale - january 10                     140                       26               3,640 Purchase-January 19                        360                             30                   10,800 average cost method 760                        27.89 21200 Sale - january 25 260                 27.89         7,252.63 Ending inventory 500                        27.89             13,947.37 400       10,892.63 2 FIFO cost method FIFO   Inventory on hand Cost of goods sold # of units Cost per unit $ Inventory value $ # of units Cost per unit $ Inventory value $ Beginning inventory                        360                             25                     9,000 Purchase-January 8                        180                             28                     5,040 Sale - january 10                     140                       25               3,500 Purchase-January 19                        360                             30                   10,800 Sale - january 25                     220                       25               5,500                       40                       28               1,120 Ending inventory                        140                             28                     3,920                        360                             30                   10,800 Total ending inventory                        500                   14,720                     400            10,120

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