This question has stumped me. I dont understand how the number change under cost of goods sold. So if you could answer this and show how you get the answer I would appreciate it. Do not give answer in image FIFO (Perpetual)Beginning InventoryPurchasesFebruaryMarchMayNet PurchasesGoods Available for SaleCost of Goods SoldUnits from Beginning InventoryUnits from February PurchaseUnits from March PurchaseUnits from May PurchaseTotal Cost of Goods SoldEnding InventoryUnitsURL10 $30$20 $50 $100110Cost perUnit10302060S$$$7.308.9010.9010.707.308.9010.9010.70STotal731,0201,093558 Required informationCC7-1 (Algo) 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 productline had exceeded the profits earned. In December, a supplier asked her to sell a prepackaged spa kit. Feeling she couldmanage a single product line, Nicole agreed. Nicole's Getaway Spa (NGS) would make monthly purchases from thesupplier at a cost that included production costs and a transportation charge. NGS would keep track of its new inventoryusing a perpetual inventory system.On December 31 of last year, NGS had 10 units at a total cost of $7.30 per unit. Nicole purchased 30 more units at $8.90 inFebruary. In March, Nicole purchased 20 units at $10.90 per unit. In May, 50 units were purchased at $10.70 per unit. InJune, NGS sold 50 units at a selling price of $12.90 per unit and 40 units at $10.90 per unit.

Perpetual FIFO is a cost flow tracking system under which the first unit of inventory acquired is…

This question has stumped me. I dont understand how the number change under cost of goods sold. So if you could answer this and show how you get the answer I would appreciate it. Do not give answer in image

This question has stumped me. I dont understand how the number change under cost of goods sold. So if you could answer this and show how you get the answer I would appreciate it. Do not give answer in image

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

This question has stumped me. I dont understand how the number change under cost of goods sold. So if you could answer this and show how you get the answer I would appreciate it.

Do not give answer in image

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
URL
10 $
30
$
20 $
50 $
100
110
Cost per
Unit
10
30
20
60
S
$
$
$
7.30
8.90
10.90
10.70
7.30
8.90
10.90
10.70
S
Total
73
1,020
1,093
558

Required information
CC7-1 (Algo) 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 $7.30 per unit. Nicole purchased 30 more units at $8.90 in
February. In March, Nicole purchased 20 units at $10.90 per unit. In May, 50 units were purchased at $10.70 per unit. In
June, NGS sold 50 units at a selling price of $12.90 per unit and 40 units at $10.90 per unit.

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