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Samuelson and Messenger (SAM) began 2021 with 340 units of its one product. These units were purchased near the end of 2020 for $22 each. During the month of January, 170 units were purchased on January 8 for $25 each and another 340 units were purchased on January 19 for $27 each. Sales of 185 units and 210 units were made on January 10 and January 25, respectively. There were 455 units on hand at the end of the month. SAM uses a perpetual inventory system. Required: 1. Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO. 2. Complete the below table to calculate ending inventory and cost of goods sold for January using average cost. Complete this question by entering your answers in the tabs below.

Samuelson and Messenger (SAM) began 2021 with 340 units of its one product. These units were purchased near the end of 2020 for $22 each. During the month of January, 170 units were purchased on January 8 for $25 each and another 340 units were purchased on January 19 for $27 each. Sales of 185 units and 210 units were made on January 10 and January 25, respectively. There were 455 units on hand at the end of the month. SAM uses a perpetual inventory system. Required: 1. Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO. 2. Complete the below table to calculate ending inventory and cost of goods sold for January using average cost. Complete this question by entering your answers in the tabs below.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...
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Samuelson and Messenger (SAM) began 2021 with 340 units of its one product. These units were purchased near the end of 2020 for $22 each. During the month of January, 170 units were purchased on January 8 for $25 each and another 340 units were purchased on January 19 for $27 each. Sales of 185 units and 210 units were made on January 10 and January 25, respectively. There were 455 units on hand at the end of the month. SAM uses a perpetual inventory system. Required: 1. Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO. 2. Complete the below table to 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 Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO. Perpetual FIFO Beg. Inventory Purchases: January 8 January 19 Total Cost of Goods Available for Sale # of units Cost per unit 170 340 850 340 S 22.00 $ Cost of Goods Available for Sale 25.00 27.00 $ 7,480 4,250 9,180 20,910 Cost of Goods Sold - January 10 Cost of Goods Sold $4,070 # of units Cost per sold unit 185 $ 22.00 22.00 0 0 185 25.00 27.00 0 0 $ 4,070 < Required 1 Cost of Goods Sold - January 25 # of units sold 340 $ 55 395 Cost of Goods Sold 22.00 $ 7,480 Cost per unit 25.00 27.00 Required 2 > 1,375 0 $ 8,855 Inventory Balance # of units in ending inventory 0 Cost per Ending unit Inventory $ 22.00 $ 25.00 27.00 $ 0 0 0 0
Transcribed Image Text:Samuelson and Messenger (SAM) began 2021 with 340 units of its one product. These units were purchased near the end of 2020 for $22 each. During the month of January, 170 units were purchased on January 8 for $25 each and another 340 units were purchased on January 19 for $27 each. Sales of 185 units and 210 units were made on January 10 and January 25, respectively. There were 455 units on hand at the end of the month. SAM uses a perpetual inventory system. Required: 1. Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO. 2. Complete the below table to 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 Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO. Perpetual FIFO Beg. Inventory Purchases: January 8 January 19 Total Cost of Goods Available for Sale # of units Cost per unit 170 340 850 340 S 22.00 $ Cost of Goods Available for Sale 25.00 27.00 $ 7,480 4,250 9,180 20,910 Cost of Goods Sold - January 10 Cost of Goods Sold $4,070 # of units Cost per sold unit 185 $ 22.00 22.00 0 0 185 25.00 27.00 0 0 $ 4,070 < Required 1 Cost of Goods Sold - January 25 # of units sold 340 $ 55 395 Cost of Goods Sold 22.00 $ 7,480 Cost per unit 25.00 27.00 Required 2 > 1,375 0 $ 8,855 Inventory Balance # of units in ending inventory 0 Cost per Ending unit Inventory $ 22.00 $ 25.00 27.00 $ 0 0 0 0
Samuelson and Messenger (SAM) began 2021 with 340 units of its one product. These units were purchased near the end of 2020 for $22 each. During the month of January, 170 units were purchased on January 8 for $25 each and another 340 units were purchased on January 19 for $27 each. Sales of 185 units and 210 units were made on January 10 and January 25, respectively. There were 455 units on hand at the end of the month. SAM uses a perpetual inventory system. Required: 1. Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO. 2. Complete the below table to 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 Complete the below table to calculate ending inventory and cost of goods sold for January using average cost (Round cost per unit to 2 decimal places. Enter inventory reductions from sales as negative numbers.) Perpetual Average Beginning Inventory Purchase - January 8 Subtotal Average Cost Sale - January 10 Subtotal Average Cost Purchase - January 19 Subtotal Average Cost Sale - January 25 Total # of units Inventory on hand Cost per unit 0 0 0 0 Inventory Value $ $ < Required 1 0 0 0 0 0 0 0 0 # of units sold Cost of Goods Sold Avg. Cost per unit 0 Required 2 > Cost of Goods Sold S
Transcribed Image Text:Samuelson and Messenger (SAM) began 2021 with 340 units of its one product. These units were purchased near the end of 2020 for $22 each. During the month of January, 170 units were purchased on January 8 for $25 each and another 340 units were purchased on January 19 for $27 each. Sales of 185 units and 210 units were made on January 10 and January 25, respectively. There were 455 units on hand at the end of the month. SAM uses a perpetual inventory system. Required: 1. Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO. 2. Complete the below table to 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 Complete the below table to calculate ending inventory and cost of goods sold for January using average cost (Round cost per unit to 2 decimal places. Enter inventory reductions from sales as negative numbers.) Perpetual Average Beginning Inventory Purchase - January 8 Subtotal Average Cost Sale - January 10 Subtotal Average Cost Purchase - January 19 Subtotal Average Cost Sale - January 25 Total # of units Inventory on hand Cost per unit 0 0 0 0 Inventory Value $ $ < Required 1 0 0 0 0 0 0 0 0 # of units sold Cost of Goods Sold Avg. Cost per unit 0 Required 2 > Cost of Goods Sold S
Expert Solution
Step 1 Introduction

FIFO stands for First In First Out. LIFO stands for Last In First out. The inventory can be valued using various methods as FIFO, LIFO and weighted average method.

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