Question

Required information

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 10 units at a total cost of $6 per unit. Nicole purchased 25 more units at $8 in February. In March, Nicole purchased 15 units at $10 per unit. In May, 50 units were purchased at $9.80 per unit. In June, NGS sold 50 units at a selling price of $12 per unit and 35 units at $10 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			$0
Purchases
February
March	15
May
Net Purchases	15		0
Goods Available for Sale
Cost of Goods Sold
Units from Beginning Inventory
Units from February Purchase
Units from March Purchase	15
Units from May Purchase
Total Cost of Goods Sold	15		0
Ending Inventory	15

Answer 1

FIFO (Perpetual) Units Cost per Unit Total Beginning Inventory 10 6 $60 Purchases February 25 8 200 March 15 10 150 May 50 9.8 490 Net Purchases 90 840 Goods Available for Sale 100 900 Cost of Goods Sold Units from Beginning Inventory 10 6 60 Units from February Purchase 25 8 200 Units from March Purchase 15 10 150 Units from May Purchase 35 9.8 343 Total Cost of Goods Sold 85 753 Ending Inventory 15 9.8 147