Samuelson 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 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. Cost of Goods Available for SaleCost of Goods Sold - Average CostEnding Inventory - Average Cost# of units inendinginventoryAverage CostCost of GoodsAvailable forSaleAverageCost perUnitAverageCost perunitUnit# of unitsCost ofGoods SoldEndingInventory# of unitsCostsoldBeginning Inventory200 $25.00 $5,000Purchases:100 $28.00200 $ 30.00January 82,800January 196,000Total500$13,800 Cost of Goods Available for SaleCost of Goods Sold - Periodic FIFOEnding Inventory - Periodic FIFO# of unitsin endinginventoryFIFO# of units Cost per Cost of Goodsunit# of units Cost persoldCost perunitCost ofEndingInventoryAvailable for SaleunitGoods SoldBeginning Inventory200 $ 25.00 $5,000$25.0025.002$Purchases:January 810028.002,80028.0028.00January 1920030.006,00030.0030.00Total50013,800

FIFO method and Average method are two method of inventory valuation. FIFO is first in first out…

Answered: Samuelson and Messenger (SAM) began…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

Samuelson 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 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.

Cost of Goods Available for Sale
Cost of Goods Sold - Average Cost
Ending Inventory - Average Cost
# of units in
ending
inventory
Average Cost
Cost of Goods
Available for
Sale
Average
Cost per
Unit
Average
Cost per
unit
Unit
# of units
Cost of
Goods Sold
Ending
Inventory
# of units
Cost
sold
Beginning Inventory
200 $25.00 $
5,000
Purchases:
100 $28.00
200 $ 30.00
January 8
2,800
January 19
6,000
Total
500
$
13,800

Cost of Goods Available for Sale
Cost of Goods Sold - Periodic FIFO
Ending Inventory - Periodic FIFO
# of units
in ending
inventory
FIFO
# of units Cost per Cost of Goods
unit
# of units Cost per
sold
Cost per
unit
Cost of
Ending
Inventory
Available for Sale
unit
Goods Sold
Beginning Inventory
200 $ 25.00 $
5,000
$
25.00
25.00
2$
Purchases:
January 8
100
28.00
2,800
28.00
28.00
January 19
200
30.00
6,000
30.00
30.00
Total
500
13,800

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions