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 10 units at a total cost of $6.90 per unit. Nicole purchased 30 more units at $8.50 in February. In March, Nicole purchased 10 units at $10.50 per unit. In May, 50 units were purchased at $10.30 per unit. In June, NGS sold 50 units at a selling price of $12.50 per unit and 30 units at $10.50 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 Cost of Goods Sold Units from Beginning Inventory Units from February Purchase Units from March Purchase Units from May Purchase Total Cost of Goods Sold Ending Inventory Units 0 0 Cost per Unit $ Total 0 0 0
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 10 units at a total cost of $6.90 per unit. Nicole purchased 30 more units at $8.50 in February. In March, Nicole purchased 10 units at $10.50 per unit. In May, 50 units were purchased at $10.30 per unit. In June, NGS sold 50 units at a selling price of $12.50 per unit and 30 units at $10.50 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 Cost of Goods Sold Units from Beginning Inventory Units from February Purchase Units from March Purchase Units from May Purchase Total Cost of Goods Sold Ending Inventory Units 0 0 Cost per Unit $ Total 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 10 units at a total cost of $6.90 per unit. Nicole
purchased 30 more units at $8.50 in February. In March, Nicole purchased 10 units at
$10.50 per unit. In May, 50 units were purchased at $10.30 per unit. In June, NGS sold
50 units at a selling price of $12.50 per unit and 30 units at $10.50 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
Cost of Goods Sold
Units from Beginning Inventory
Units from February Purchase
Units from March Purchase
Units from May Purchase
Total Cost of Goods Sold
Ending Inventory
Units
0
0
Cost per
Unit
$
Total
0
0
0
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