Samuelson and Messenger (S&M) began 2013 with 260 units of its one product. Thes

Question

Samuelson and Messenger (S&M) began 2013 with 260 units of its one product. These units were purchased near the end of 2012 for $22 each. During the month of January, 130 units were purchased on January 8 for $25 each and another 260 units were purchased on January 19 for $27 each. Sales of 165 units and 160 units were made on January 10 and January 25, respectively. There were 325 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.

Explanation / Answer

FIFO Date Particulars Units   Cost Amount COGS 1-Jan Op Bal                                    260.00                         22.00                            5,720.00 8-Jan Purchases                                    130.00                         25.00                            3,250.00 Total                                    390.00                            8,970.00 10-Jan COGS                                    165.00                                -                              3,630.00 165*22 Total                                    225.00                            5,340.00 19-Jan Purchases                                    260.00                         27.00                            7,020.00 Total                                    485.00                          12,360.00 25-Jan Sales                                    160.00                            3,715.00 95*22+ 65*25 Total                                    325.00                            8,645.00 COGS                7,345.00 Closing Stock                8,645.00 Note: In the Question table is not provided. So I have prepared it myself

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