! Required information CC7-1 (Static) Accounting for Changing Inventory Costs [LO 7-3, LO 7-5] 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 per unit. Nicole purchased 25 more units at $8 in February. In March, Nicole purchased 15 units at $10 per unit. In May, 50 units were purchased at $9.80 per unit. In June, NGS sold 50 units at a selling price of $12 per unit and 35 units at $10 per unit. CC7-1 (Static) Part 2 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 Units Cost per Unit Total
! Required information CC7-1 (Static) Accounting for Changing Inventory Costs [LO 7-3, LO 7-5] 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 per unit. Nicole purchased 25 more units at $8 in February. In March, Nicole purchased 15 units at $10 per unit. In May, 50 units were purchased at $9.80 per unit. In June, NGS sold 50 units at a selling price of $12 per unit and 35 units at $10 per unit. CC7-1 (Static) Part 2 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 Units Cost per Unit Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
CC7-1 (Static) Accounting for Changing Inventory Costs [LO 7-3, LO 7-5]
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 per unit. Nicole purchased 25 more units at $8 in
$9.80 per unit. In June,
February. In March, Nicole purchased 15 units at $10 per unit. In May, 50 units were purchased
NGS sold 50 units at a selling price of $12 per unit and 35 units at $10 per unit.
CC7-1 (Static) Part 2
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
Units
Cost per
Unit
Total](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff7205458-6a36-4688-89d1-73b6cc9a7c9b%2F3494145d-2b0c-455d-830b-5b73cf866b4b%2Fkq7bsby_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
CC7-1 (Static) Accounting for Changing Inventory Costs [LO 7-3, LO 7-5]
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 per unit. Nicole purchased 25 more units at $8 in
$9.80 per unit. In June,
February. In March, Nicole purchased 15 units at $10 per unit. In May, 50 units were purchased
NGS sold 50 units at a selling price of $12 per unit and 35 units at $10 per unit.
CC7-1 (Static) Part 2
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
Units
Cost per
Unit
Total
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