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please explain this question step by step, thanks. ACTUAL COST PER UNIT UNITS PURCHASED...

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Accounting

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please explain this question step by step, thanks.

ACTUAL COST PER UNIT UNITS PURCHASED UNITS SOLD NRV AT MONTH END JANUARY 17.00 3,000 2.740 16.75 FEBRUARY 16.80 3,200 3,000 16.50 REQUIRED: PREPARE AN ANALYSIS OF COGS FOR JANUARY & FEBRUARY. ASSUME JAN 1ST INV = 0. USE FIFO. IGNORE INVENTORY COST/NRV DIFFERENCES 2 JANUARY FEBRUARY 3 BEG INV 4,420 4 PURCHASES 51,000 53,760 5 1 GAFS 51,000 58.180 6 END INV (4.420) (7.728) 7 COGS 46,580 50,452 COMBINED = 97,032 18 19 REQUIRED: PREPARE AN ANALYSIS OF COGS FOR JANUARY & FEBRUARY 20 REFLECT COST/NRV DIFFERENCES 21 JANUARY FEBRUARY 22 BEG INV 4,355 23 PURCHASES 51,000 53.760 24 GAFS 51,000 58.115 25 END INV (4,355) (7,590) 26 COGS 46 645 50,525 COMBINED = 97,170 27 28 COGS CHANGE 65 73 NOTE FEB CHANGE 460 UNITS X $30/UNIT LESS 260 UNITS 29 30 NOTE: COMBINED COGS IS $138 HIGHER WHEN EMPLOYING LOWER OF COST/NRV 31 460 UNITS X $.30/UNIT JAN COGS: 2,740 UNITS X 17 : 260 UNITS X 25 = 46,580 65 46,645 FEB COGS: 260 UNITS X 16.75 2,740 UNITS X 16.80 460 UNITS X 30 4,355 46,032 138 50 525

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