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.)
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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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 $5.50 per unit. Nicole purchased 40 more units at $7.50
in February. In March, Nicole purchased 20 units at $9.50 per unit. In May, 50 units were purchased at $9.30 per unit. In
June, NGS sold 50 units at a selling price of $11.50 per unit and 60 units at $11.30 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.)
FIFO (Perpetual)
Beginning Inventory
Purchases
February
March
May
Net Purchases
Goods Available for Sale i
Cost of Goods Sold
Units from Beginning Inventory
Units from February Purchase
Units from March Purchase
Units from May Purchase
Units
Cost per
Unit
Total](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff7880fee-1c56-468e-ac86-a9c626dffba9%2Fc3716e2e-114a-4a53-80ab-26cb2d619ccf%2Fhpzilrh_processed.png&w=3840&q=75)
Transcribed Image Text: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 $5.50 per unit. Nicole purchased 40 more units at $7.50
in February. In March, Nicole purchased 20 units at $9.50 per unit. In May, 50 units were purchased at $9.30 per unit. In
June, NGS sold 50 units at a selling price of $11.50 per unit and 60 units at $11.30 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.)
FIFO (Perpetual)
Beginning Inventory
Purchases
February
March
May
Net Purchases
Goods Available for Sale i
Cost of Goods Sold
Units from Beginning Inventory
Units from February Purchase
Units from March Purchase
Units from May Purchase
Units
Cost per
Unit
Total
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