amuelson and Messenger (SAM) began 2021 with 200 units of its one product. These units were purchased near the end of 2020 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. SAM uses a perpetual inventory system. Required:1. Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO.2. Complete the below table to calculate ending inventory and cost of goods sold for January using average cost. Cost of Goods Available for SaleCost of Goods Sold - January 10Cost of Goods Sold - January 25Inventory BalancePerpetual FIFOCost of Goods# ofunitsCost perunitCost perunitCost of GoodsSoldCost perunit# of units in endinginventoryEndingInventoryCost of GoodsCost perunit# of units sold# of units soldAvailable for SaleSoldBeg. Inventory200 $25.00 $5.000$25.00$25.00$25.00Purchases:January 810028.002,80028.0028.0028.00January 1920030.006,00030.0030.0030.00Total50013,800 Inventory on handCost of Goods SoldPerpetual AverageAvg. Cost perunitCost of GoodsSoldCostInventoryValue# of unitssold# of unitsper unitBeginning InventoryPurchase - January 8Subtotal Average CostSale - January 10Subtotal Average CostPurchase - January 19Subtotal Average CostSale - January 25Total

Name: amuelson and Messenger (SAM) began 2021 with 200 units of its one prod
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Description: amuelson and Messenger (SAM) began 2021 with 200 units of its one product. These units were purchased near the end of 2020 for $25 each. During the month of January, 100 units were purchased on January 8 for $28 each and another 200 units were purcha

FIFO is the inventory valuation method in which inventories purchased first will be sold first.…

Answered: amuelson and Messenger (SAM) began 2021…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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amuelson and Messenger (SAM) began 2021 with 200 units of its one product. These units were purchased near the end of 2020 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. SAM uses a perpetual inventory system.

Required:
1. Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO.
2. Complete the below table to calculate ending inventory and cost of goods sold for January using average cost.

Cost of Goods Available for Sale
Cost of Goods Sold - January 10
Cost of Goods Sold - January 25
Inventory Balance
Perpetual FIFO
Cost of Goods
# of
units
Cost per
unit
Cost per
unit
Cost of Goods
Sold
Cost per
unit
# of units in ending
inventory
Ending
Inventory
Cost of Goods
Cost per
unit
# of units sold
# of units sold
Available for Sale
Sold
Beg. Inventory
200 $
25.00 $
5.000
$
25.00
$
25.00
$
25.00
Purchases:
January 8
100
28.00
2,800
28.00
28.00
28.00
January 19
200
30.00
6,000
30.00
30.00
30.00
Total
500
13,800

Inventory on hand
Cost of Goods Sold
Perpetual Average
Avg. Cost per
unit
Cost of Goods
Sold
Cost
Inventory
Value
# of units
sold
# of units
per unit
Beginning Inventory
Purchase - January 8
Subtotal Average Cost
Sale - January 10
Subtotal Average Cost
Purchase - January 19
Subtotal Average Cost
Sale - January 25
Total

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