Samuelson and Messenger (SAM) began 2021 with 240 units of its one product. These units were purchased near the end of 2020 for $25 each. During the month of January, 120 units were purchased on January 8 for $28 each and another 240 units were purchased on January 19 for $30 each. Sales of 150 units and 125 units were made on January 10 and January 25, respectively. There were 325 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.
Samuelson and Messenger (SAM) began 2021 with 240 units of its one product. These units were purchased near the end of 2020 for $25 each. During the month of January, 120 units were purchased on January 8 for $28 each and another 240 units were purchased on January 19 for $30 each. Sales of 150 units and 125 units were made on January 10 and January 25, respectively. There were 325 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.
Chapter1: Financial Statements And Business Decisions
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Brief Exercise 8-7 (Algo) Inventory cost flow methods; periodic system [LO8-4]
Samuelson and Messenger (SAM) began 2021 with 240 units of Its one product. These units were purchased near the end of 2020 for
$25 each. During the month of January, 120 units were purchased on January 8 for $28 each and another 240 units were purchased
on January 19 for $30 each. Sales of 150 units and 125 units were made on January 10 and January 25, respectively. There were 325
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
# of units
Cost per
unit
120
240
600
240 $ 25.00 $
Cost of Goods
Available for Sale
28.00
30.00
S
6,000
3,360
7,200
16,560
Cost of Goods Sold - Periodic FIFO
Cost of
# of units Cost per
Goods
sold
Sold
unit
25.00
28.00
30.00
Ending Inventory - Periodic FIFO
# of units
Cost per Ending
in ending
unit Inventory
inventory
S
25.00
28.00
30.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F530ba171-f286-4126-81ab-a78a0326a66d%2Fee885567-e6d1-43e8-953e-6b3ac87d92be%2Fav60m68_processed.png&w=3840&q=75)
Transcribed Image Text:4
Book
References
Brief Exercise 8-7 (Algo) Inventory cost flow methods; periodic system [LO8-4]
Samuelson and Messenger (SAM) began 2021 with 240 units of Its one product. These units were purchased near the end of 2020 for
$25 each. During the month of January, 120 units were purchased on January 8 for $28 each and another 240 units were purchased
on January 19 for $30 each. Sales of 150 units and 125 units were made on January 10 and January 25, respectively. There were 325
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
# of units
Cost per
unit
120
240
600
240 $ 25.00 $
Cost of Goods
Available for Sale
28.00
30.00
S
6,000
3,360
7,200
16,560
Cost of Goods Sold - Periodic FIFO
Cost of
# of units Cost per
Goods
sold
Sold
unit
25.00
28.00
30.00
Ending Inventory - Periodic FIFO
# of units
Cost per Ending
in ending
unit Inventory
inventory
S
25.00
28.00
30.00
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