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 method.

2. Calculate ending inventory and cost of goods sold for January using average cost method.

1. $3230 (cost of inventory sold), 365 units

2. $16.8, 325 units

Explanation:

1. Using FIFO costing method;

January 10

Sales= 150 units x $25 (from 240 units purchased near the end of 2020 for $25 each.)

January 25

Sales of 125 units (from 90 units left from purchase near the end of 2020 for $25 each and 35 units from 120 units purchased on January 8 for $28 each).

= 90 x $25 = $2,250 + (35 x $28)

=$2250+$980= $3230 (cost of inventory sold)

Ending inventory

= 120-35 + 240

= 365 units

2. Total purchase= 600 units

Total cost= $10,080

Total sales= 275 units

Average cost of inventory= 10080/600 = $16.8

Ending inventory= 600 units - Total sales

= 600-275 = 325 units

answer: yo mama

explanation: yo mama

answer the law of increasing costs;