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Question - Samuelson and Messenger (SAM) began 2021 with 270 units of its one product. These units were purchased near the end of 2020 for $24 each. During the month of January, 135 units were purchased on January 8 for $27 each and another 270 units were purchased on January 19 for $29 each. Sales of 130 units and 170 units were made on January 10 and January 25, respectively. There were 375 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.
2. Calculate ending inventory and cost of goods sold for January using average cost.
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