Question

In: Accounting

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

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 periodic inventory system.

Calculate ending inventory and cost of goods sold for January using (1) FIFO, and (2) average cost. (Round your intermediate calculations to 1 decimal place. Round your average cost values to the nearest dollar amount.)
FIFO Average cost
  Ending inventory $ $
  Cost of goods sold $ $

Solutions

Expert Solution

FIFO Opening Purchase / (Sale) Closing
Units Rate Cost Units Rate Cost Units Rate Cost
01-Jan    220     22    4,840         -        -              -      220     22    4,840
08-Jan    220     22    4,840     110     25     2,750    220     22    4,840
   110     25    2,750
10-Jan    220     22    4,840 (130)     22 (2,860) 90     22    1,980
   110     25    2,750    110     25    2,750
19-Jan 90     22    1,980     220     27     5,940 90     22    1,980
   110     25    2,750    110     25    2,750
   220     27    5,940
25-Jan 90     22    1,980     (90)     22 (1,980)        -       22           -  
   110     25    2,750     (30)     25       (750) 80     25    2,000
   220     27    5,940    220     27    5,940
31-Jan    300    7,940
Average Cost Opening Purchase / (Sale) Closing
Units Rate Cost Units Rate Cost Units Rate Cost
01-Jan 220.0 22.0 4840.0 - - - 220.0 22.0 4840.0
08-Jan 220.0 22.0 4840.0 110.0 25.0 2750.0 330.0 23.0 7590.0
10-Jan 330.0 23.0 7590.0 (130.0) 23.0 (2990.0) 200.0 23.0 4600.0
19-Jan 200.0 23.0 4600.0 220.0 27.0 5940.0 420.0 25.1 10540.0
25-Jan 420.0 25.1 10540.0 (120.0) 25.1 (3012.0) 300.0 25.1 7528.0
31-Jan 300.0 7528.0

ekkarill92 answered 10 months ago
Next > < Previous

Related Solutions

Samuelson and Messenger (S&M) began 2018 with 200 units of its one product. These units were...
Samuelson and Messenger (S&M) began 2018 with 200 units of its one product. These units were purchased near the end of 2017 for $25 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 125 units and 100 units were made on January 10 and January 25, respectively. There were 275 units on hand at the end of the month....
Samuelson and Messenger (S&M) began 2018 with 330 units of its one product. These units were...
Samuelson and Messenger (S&M) began 2018 with 330 units of its one product. These units were purchased near the end of 2017 for $20 each. During the month of January, 165 units were purchased on January 8 for $23 each and another 330 units were purchased on January 19 for $25 each. Sales of 170 units and 200 units were made on January 10 and January 25, respectively. There were 455 units on hand at the end of the month....
Samuelson and Messenger (SAM) began 2021 with 250 units of its one product. These units were...
Samuelson and Messenger (SAM) began 2021 with 250 units of its one product. These units were purchased near the end of 2020 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....
Samuelson and Messenger (SAM) began 2021 with 360 units of its one product. These units were...
Samuelson and Messenger (SAM) began 2021 with 360 units of its one product. These units were purchased near the end of 2020 for $20 each. During the month of January, 180 units were purchased on January 8 for $23 each and another 360 units were purchased on January 19 for $25 each. Sales of 170 units and 270 units were made on January 10 and January 25, respectively. There were 460 units on hand at the end of the month....
Samuelson and Messenger (SAM) began 2021 with 200 units of its one product. These units were...
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....
Samuelson and Messenger (SAM) began 2021 with 320 units of its one product. These units were...
Samuelson and Messenger (SAM) began 2021 with 320 units of its one product. These units were purchased near the end of 2020 for $24 each. During the month of January, 160 units were purchased on January 8 for $27 each and another 320 units were purchased on January 19 for $29 each. Sales of 215 units and 210 units were made on January 10 and January 25, respectively. There were 375 units on hand at the end of the month....
Johnson Corporation began the year with inventory of 13,000 units of its only product. The units...
Johnson Corporation began the year with inventory of 13,000 units of its only product. The units cost $9 each. The company uses a perpetual inventory system and the FIFO cost method. The following transactions occurred during the year: Purchased 65,000 additional units at a cost of $12 per unit. Terms of the purchases were 3/10, n/30, and 100% of the purchases were paid for within the 10-day discount period. The company uses the gross method to record purchase discounts. The...
Johnson Corporation began the year with inventory of 13,000 units of its only product. The units...
Johnson Corporation began the year with inventory of 13,000 units of its only product. The units cost $9 each. The company uses a perpetual inventory system and the FIFO cost method. The following transactions occurred during the year: Purchased 65,000 additional units at a cost of $12 per unit. Terms of the purchases were 3/10, n/30, and 100% of the purchases were paid for within the 10-day discount period. The company uses the gross method to record purchase discounts. The...
Johnson Corporation began the year with inventory of 20,000 units of its only product. The units...
Johnson Corporation began the year with inventory of 20,000 units of its only product. The units cost $9 each. The company uses a perpetual inventory system and the FIFO cost method. The following transactions occurred during the year: Purchased 100,000 additional units at a cost of $12 per unit. Terms of the purchases were 2/10, n/30, and 80% of the purchases were paid for within the 10-day discount period. The company uses the gross method to record purchase discounts. The...
Johnson Corporation began the year with inventory of 30,000 units of its only product. The units...
Johnson Corporation began the year with inventory of 30,000 units of its only product. The units cost $8 each. The company uses a perpetual inventory system and the FIFO cost method. The following transactions occurred during the year: Purchased 150,000 additional units at a cost of $10 per unit. Terms of the purchases were 1/10, n/30, and 100% of the purchases were paid for within the 10-day discount period. The company uses the gross method to record purchase discounts. The...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT