Samuelson and Messenger (SAM) began 2021 with 250 units of its one product. These units were purchased near the end of 2020 for $20 each. During the month of January, 125 units were purchased on January 8 for $23 each and another 250 units were purchased on January 19 for $25 each. Sales of 200 units and 150 units were made on January 10 and January 25, respectively. There were 275 units on hand at the end of the month. SAM uses a periodic inventory system.

Required:
1. Calculate ending inventory and cost of goods sold for January using FIFO.

2. Calculate ending inventory and cost of goods sold for January using average cost.

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Required 1 Required 2 Calculate ending inventory and cost of goods sold for January using average cost. (Round cost per unit to 2 decimal places.) Cost of Goods Available for Sale Cost of Goods Sold - Average Cost Average Cost per Average Cost Unit Cost # of units # of units sold Ending Inventory - Average Cost # of units Average in ending Cost per inventory unit Cost of Goods Sold Ending Inventory Unit Beginning Inventory 250 $20.00 Purchases: January 8 125 $ 23.00 January 19 250 $25.00 625 $ 0 Required 2 > Total Cost of Goods Available for Sale $ $ 5,000 2,875 6,250 14,125 < Required 1 0 Required 1 Required 2 Calculate ending inventory and cost of goods sold for January using average cost. (Round cost per unit to 2 decimal places.) Cost of Goods Available for Sale Cost of Goods Sold - Average Cost Average Cost per Average Cost Unit Cost # of units # of units sold Ending Inventory - Average Cost # of units Average in ending Cost per inventory unit Cost of Goods Sold Ending Inventory Unit Beginning Inventory 250 $20.00 Purchases: January 8 125 $ 23.00 January 19 250 $25.00 625 $ 0 Required 2 > Total Cost of Goods Available for Sale $ $ 5,000 2,875 6,250 14,125 < Required 1 0

Answer rating: 100% (QA)

Q 1 Calculate ending inventory and cost of goods sold for January using FIFO Solution Calculation of Ending Inventory and Cost of Goods Sold for Janua... View the full answer