Question 1

A retail store sells electronics. During a month, the store had the following transactions:

Beginning Inventory:

50 Smartphones purchased at $300 each

30 Laptops purchased at $700 each

28 Tablets purchased at $250 each

Purchases During the Month:

62 Smartphones purchased at $345 each

35 Laptops purchased at $765 each

35 Tablets purchased at $300 each

Sales During the Month:

84 Smartphones

42 Laptops

52 Tablets

Calculate the cost of ending inventory using the FIFO Method. Also, determine value of COGS for the month. Show your calculations.

Question 2

A manufacturing company, XYZ Inc., produces specialized machinery. During a fiscal year, the company faced complex inventory movements due to fluctuations in production demands and supplier delays. Here are the details for one of their machine components, Component A, over the year:

Beginning Inventory (January 1)

200 units purchased at $150 each

100 units purchased at $160 each

Production and Purchase Activities:

January: Produced 120 units

February: Purchased 80 units at $170 each

March: Produced 150 units

April: Purchased 60 units at $180 each

May: Produced 100 units

Sales Activities:

Throughout the year, 380 units were sold.

Using the FIFO method, calculate the cost of ending inventory and the cost of goods sold for Component A. Show your calculations.