Samuelson and Messenger (S&M) began 2013 with 220 units of its one product. Thes

Question

Samuelson and Messenger (S&M) began 2013 with 220 units of its one product. These units were purchased near the end of 2012 for $22 each. During the month of January, 110 units were purchased on January 8 for $25 each and another 220 units were purchased on January 19 for $27 each. Sales of 130 units and 120 units were made on January 10 and January 25, respectively. There were 300 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.

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.)

Samuelson and Messenger (S&M) began 2013 with 220 units of its one product. These units were purchased near the end of 2012 for $22 each. During the month of January, 110 units were purchased on January 8 for $25 each and another 220 units were purchased on January 19 for $27 each. Sales of 130 units and 120 units were made on January 10 and January 25, respectively. There were 300 units on hand at the end of the month. S&M uses a perpetual inventory system.

Explanation / Answer

I have solved this question earlier with different figures. Please workout using yours figures. If you need any further help just PM me. If I have helped you please rate me 5 stars first (before you rate anyone else). Samuelson and Messenger (S&M) began 2013 with 250 units of its one product. These units were purchased near the end of 2012 for $24 each. During the month of January, 125 units were purchased on January 8 for $27 each and another 250 units were purchased on January 19 for $29 each. Sales of 170 units and 130 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 periodic inventory system. Calculate ending inventory and cost of goods sold for January using (1) FIFO, and (2) average cost. answer FIFO method: Ending inventory = 75*27+250*29 = $ 9,275 Cost of goods sold = 250*24 + 50*27 = $ 7,350 Average cost method: Average cost per unit = (250*24+125*27+250*29)/(250+125+250) = 26.6 Ending inventory = 325*26.6 = $ 8,645 Cost of goods sold = (170+130)*26.6 = $ 7,980

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