Question: Just need help with the one i got wrong and finding the average inventory and cost of good sold. Thank you!! In October, Nicole eliminated

Just need help with the one i got wrong and finding theaverage inventory and cost of good sold. Thank you!! In October, NicoleJust need help with the one i got wrong and finding the average inventory and cost of good sold. Thank you!!

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 of last year, NGS had 20 units at a total cost of $5.20 per unit. Nicole purchased 40 more units at $7.20 in February. In March, Nicole purchased 15 units at $9.20 per unit. In May, 60 units were purchased at $9.00 per unit. In June, NGS sold 60 units at a selling price of $11.20 per unit and 55 units at $11.80 per unit. 2. 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.) Required information 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 of last year, NGS had 20 units at a total cost of $5.20 per unit. Nicole purchased 40 more units at $7.20 in February. In March, Nicole purchased 15 units at $9.20 per unit. In May, 60 units were purchased at $9.00 per unit. In June, NGS sold 60 units at a selling price of $11.20 per unit and 55 units at $11.80 per unit. Calculate the inventory turnover ratio, using the inventory purchased on December 31 as the beginning inventory. (Round your answers to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!