Question

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, NGS purchased 15 units at a total cost of $6.60 per unit. Nicole purchased 20 more units at $8.20 in February. In March, Nicole purchased 10 units at $10.20 per unit. In May, 40 units were purchased at $10.00 per unit. In June, NGS sold 40 units at a selling price of $12.20 per unit and 35 units at $10.20 per unit.

Compute the Cost of Goods Available for Sale, Cost of Goods Sold, and Cost of Ending Inventory using the first-in, first-out (FIFO) method. (Round "Cost per Unit" to 2 decimal places.)

FIFO (Perpetual) Units Cost per Unit Total 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

Answer 1

Answer

--Requirement, as asked.

FIFO (Perpetual)	Units	Cost per unit	Total
Beginning Inventory	15	$       6.60	$                99.00
Purchases:
Feb	20	$       8.20	$              164.00
March	10	$    10.20	$              102.00
May	40	$    10.00	$              400.00
Net Purchases	70		$              666.00
Goods Available for Sales	85		$              765.00
Cost of Goods Sold:
Units from Beginning Inventory	15	$       6.60	$                99.00
Units from Feb Purchase	20	$       8.20	$              164.00
Units from Mar Purchase	10	$    10.20	$              102.00
Units from May Purchase	30	$    10.00	$              300.00
Total Cost of Goods Sold	75		$              665.00
Ending Inventory	10		$              100.00