In October, Nicole eliminated all existing inventory of cosmetic items. The trouble of ordering and tracking...

In October, Nicole eliminated all existing inventory of cosmetic items. The trouble of ordering and tracking each product line had exceeded the profits earned. In December, a supplier asked her to sell a prepackaged spa kit. Feeling she could manage a single product line, Nicole agreed. Nicole’s Getaway Spa (NGS) would make monthly purchases from the supplier at a cost that included production costs and a transportation charge. NGS would keep track of its new inventory using a perpetual inventory system. On December 31, NGS purchased 10 units at a total cost of $7.20 per unit. Nicole purchased 25 more units at $8.80 in February. In March, Nicole purchased 10 units at $10.80 per unit. In May, 40 units were purchased at $10.60 per unit. In June, NGS sold 40 units at a selling price of $12.80 per unit and 30 units at $10.80 per unit. Compute the Cost of Goods Available for Sale, Cost of Goods Sold, and Cost of Ending Inventory using the first-in, first-out (FIFO) method. (Round "Cost per Unit" to 2 decimal places.

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FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
31-Dec	10	$ 7.20	$ 72.00	10	$ 7.20	$ 72.00	0	$ 7.20	$ -
Feb	25	$ 8.80	$ 220.00	25	$ 8.80	$ 220.00	0	$ 8.80	$ -
Mar	10	$ 10.80	$ 108.00	10	$ 10.80	$ 108.00	0	$ 10.80	$ -
May	40	$ 10.60	$ 424.00	25	$ 10.60	$ 265.00	15	$ 10.60	$ 159.00
TOTAL	85		$ 824.00	70		$ 665.00	15		$ 159.00

Cost of Goods available for sale = $ 824
Cost of Goods Sold = $ 665
Cost of ending inventory = $ 159

ekkarill92 answered 2 years ago

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In October, Nicole eliminated all existing inventory of cosmetic items. The trouble of ordering and tracking...

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