Question

Samuelson and Messenger (SAM) began 2021 with 200 units of its one product. These units were purchased near the end of 2020 for $22 each. During the month of January, 100 units were purchased on January 8 for $28 each and another 200 units were purchased on January 19 for $30 each. Sales of 130 units and 130 units were made on January 10 and January 25, respectively. There were 240 units on hand at the end of the month. SAM uses a perpetual inventory system.

Required:
1. Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO.
2. Complete the below table to calculate ending inventory and cost of goods sold for January using average cost.

Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO.

Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO. Perpetual FIFO Cost of Goods Available for Sale Cost of Goods Sold - January 10 Cost of Goods Sold - January 25 Inventory Balance # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beg. Inventory 200 $22.00 $4,400 $22.00 $0 $22.00 $0 $22.00 $0 Purchases: January 8 100 28.00 2,800 28.00 0 28.00 0 28.00 0 January 19 200 30.00 6,000 30.00 0 30.00 0 30.00 0 Total 500 $13,200 0 $0 0 $0 0 $0 Complete the below table to calculate ending inventory and cost of goods sold for January using average cost (Round cost per unit to 2 decimal places. Enter inventory reductions from sales as negative numbers.) 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 $0 Purchase - January 8 0 Subtotal Average Cost 0 0 Sale - January 10 0 Subtotal Average Cost 0 0 Purchase - January 19 0 Subtotal Average Cost 0 0 Sale - January 25 0 Total 0 $0 0 $0

Answer 1

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Samuelson
Perpetual FIFO
Date	Cost of Goods available for sale			Cost of Goods sold Jan 10			Cost of Goods sold Jan 25			Balance
	# of Units	Cost per unit	Amount	# of Units sold	Cost per unit	Cost of Goods sold	# of Units sold	Cost per unit	Cost of Goods sold	# of units	Cost per unit	Inventory Balance
Beg. Inventory	200.00	22.00	4,400.00	130.00	22.00	2,860.00	70.00	22.00	1,540.00	-	22.00	-
8-Jan	100.00	28.00	2,800.00				60.00	28.00	1,680.00	40.00	28.00	1,120.00
19-Jan	200.00	30.00	6,000.00							200.00	30.00	6,000.00
Total	500.00		13,200.00	130.00		2,860.00	130.00		3,220.00	240.00		7,120.00

Perpetual Weighted average
Date	Inventory on hand			Cost of Goods sold
	# of Units	Cost per unit	Amount	No. of Units	Cost per unit	Cost of Goods sold
Beg. Inventory	200.00	22.00	4,400.00
Purchase Jan 8	100.00	28.00	2,800.00
Subtotal Average Cost	300.00	24.00	7,200.00
Sale Jan 10	130.00	24.00	3,120.00	130.00	24.00	3,120.00
Subtotal Average Cost	170.00	24.00	4,080.00
Purchase Jan 19	200.00	30.00	6,000.00
Subtotal Average Cost	370.00	27.24	10,080.00
Sale Jan 25	130.00	27.24	3,541.62	130.00	27.24	3,541.62
Total	240.00		6,538.38	260.00		6,661.62