Salt and Mineral (SAM) began 2024 with 360 units of its one product. These units were purchased near the end of 2023 for $20 each. During the month of January, 180 units were purchased on January 8 for $23 each and another 360 units were purchased on January 19 for $25 each. Sales of 170 units and 270 units were made on January 10 and January 25, respectively. There were 460 units on hand at the end of the month. SAM uses a periodic inventory system. Required: 1. Calculate ending inventory and cost of goods sold for January using FIFO. 2. Calculate ending inventory and cost of goods sold for January using average cost. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate ending inventory and cost of goods sold for January using FIFO. FIFO Beginning Inventory Purchases: January 8 January 19 Total Cost of Goods Available for Sale Number of units Cost per unit 360 $ 180 360 900 20.00 23.00 25.00 $ $ Cost of Goods Available for Sale 7,200 4,140 9,000 20 340 Cost of Goods Sold - Periodic FIFO Cost of Goods Sold $ 7,200 Number of units sold 360 170 270 800 Cost per unit 20.00 23.00 25.00 3,910 6,750 $ 17.860 Ending Inventory - Periodic FIFO Number of units in ending inventory 460 460 Cost per unit $ Ending Inventory 20.00 $ 23.00 25.00 $ 11,50 11 50
Salt and Mineral (SAM) began 2024 with 360 units of its one product. These units were purchased near the end of 2023 for $20 each. During the month of January, 180 units were purchased on January 8 for $23 each and another 360 units were purchased on January 19 for $25 each. Sales of 170 units and 270 units were made on January 10 and January 25, respectively. There were 460 units on hand at the end of the month. SAM uses a periodic inventory system. Required: 1. Calculate ending inventory and cost of goods sold for January using FIFO. 2. Calculate ending inventory and cost of goods sold for January using average cost. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate ending inventory and cost of goods sold for January using FIFO. FIFO Beginning Inventory Purchases: January 8 January 19 Total Cost of Goods Available for Sale Number of units Cost per unit 360 $ 180 360 900 20.00 23.00 25.00 $ $ Cost of Goods Available for Sale 7,200 4,140 9,000 20 340 Cost of Goods Sold - Periodic FIFO Cost of Goods Sold $ 7,200 Number of units sold 360 170 270 800 Cost per unit 20.00 23.00 25.00 3,910 6,750 $ 17.860 Ending Inventory - Periodic FIFO Number of units in ending inventory 460 460 Cost per unit $ Ending Inventory 20.00 $ 23.00 25.00 $ 11,50 11 50
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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444444
Transcribed Image Text:Salt and Mineral (SAM) began 2024 with 360 units of its one product. These units were purchased near the end of 2023 for $20 each.
During the month of January, 180 units were purchased on January 8 for $23 each and another 360 units were purchased on January
19 for $25 each. Sales of 170 units and 270 units were made on January 10 and January 25, respectively. There were 460 units on
hand at the end of the month. SAM uses a periodic inventory system.
Required:
1. Calculate ending inventory and cost of goods sold for January using FIFO.
2. Calculate ending inventory and cost of goods sold for January using average cost.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Calculate ending inventory and cost of goods sold for January using FIFO.
FIFO
Beginning Inventory
Purchases:
January 8
January 19
Total
Cost of Goods Available for Sale
Number of
units
Cost per
unit
360 $ 20.00
180
360
900
23.00
25.00
$
$
Cost of Goods
Available for Sale
7,200
4,140
9,000
20,340
Cost of Goods Sold - Periodic FIFO
Cost of
Goods
Sold
Number of
units sold
360
170
270
800
Cost per
unit
20.00 $ 7,200
23.00
25.00
3,910
6,750
$ 17,860
Ending Inventory - Periodic FIFO
Number of
units in
ending
inventory
460
460
Cost per
unit
$
Ending
Inventory
20.00 $
23.00
25.00
$
0
0
11,500
11,500
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