Samuelson and Messenger (S&M;) began 2018 with 380 units of its one product. The
ID: 2550318 • Letter: S
Question
Samuelson and Messenger (S&M;) began 2018 with 380 units of its one product. These units were purchased near the end of 2017 foir $24 each. During the month of January, 190 units were purchased on January 8 for $27 each and another 380 units were purchased on January 19 for $29 each. Sales of 185 units and 280 units were made on January 10 and January 25, respectively. There were 485 units on hand at the end of the month. S&M; uses a perpetual inventory system Required 1. Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO method 2. Complete the below table to calculate ending inventory and cost of goods sold for January using average cost method Complete this question by entering your answers in the tabs below Required 1 Required 2 Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO method Cost of Goods Available for Sale Cost of Goods Sold January 10 Cost of Goods Sold - January 25 Inventory Balance | Cost of |for units in Goods Sold ending etua Cost of Goods l # of # of | Cost per Available for | units units Cost per unit Cost of Goods Sold Cost per unit Cost per unit Ending Inventory | # of units unit sold Sale sold inventory Beg. InventoryExplanation / Answer
Solution (1)
Perpetual FIFO
Cost of goods available for sale
Cost of goods sold –January 10
Cost of goods sold –January 25
Inventory Balance
Number of units
Cost per unit ($)
Cost of goods available for sale ($)
Number of units
Cost per unit ($)
Cost of goods sold ($)
Number of units
Cost per unit ($)
Cost per unit ($)
Number of units in ending inventory
Cost per unit ($)
Ending Inventory
Beginning Inventory
380
24
9,120
185
280
485
Purchases:
185
24
4,440
195
24
4,680
105
27
2,835
January 8
190
27
5,130
85
27
2,295
380
29
11,020
January 19
380
29
11,020
Total
950
25,270
185
280
6,975
485
13,855
Solution (2)
Perpetual Average
Inventory on hand
Cost of goods sold
Number of units
Cost per unit ($)
Inventory ($)
Number of units
Average Cost per unit ($)
Cost of goods sold ($)
Beginning Inventory
380
24
9,120
Purchases January 8
190
27
5,130
Subtotal Average Cost
570
=(14,535/2)
=25.5
14,535
Sale- January 10
185
25.5
4,718
Subtotal Average Cost
385
25.5
9,817
Purchases January 19
380
29
11,020
Subtotal Average Cost
765
=(20,837/2)
=27.24
20,837
Sale- January 25
280
27.24
7,627
Ending inventory
485
27.24
13,211
Total
465
27.24
12,667
Perpetual FIFO
Cost of goods available for sale
Cost of goods sold –January 10
Cost of goods sold –January 25
Inventory Balance
Number of units
Cost per unit ($)
Cost of goods available for sale ($)
Number of units
Cost per unit ($)
Cost of goods sold ($)
Number of units
Cost per unit ($)
Cost per unit ($)
Number of units in ending inventory
Cost per unit ($)
Ending Inventory
Beginning Inventory
380
24
9,120
185
280
485
Purchases:
185
24
4,440
195
24
4,680
105
27
2,835
January 8
190
27
5,130
85
27
2,295
380
29
11,020
January 19
380
29
11,020
Total
950
25,270
185
280
6,975
485
13,855
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