8-5 (Algo) Various inventory costing methods [LO8-1, 8-4] [The following information applies to the questions displayed below.] A company began January with 8,000 units of its principal product. The cost of each unit is $8. Inventory transactions for the month of January are as follows: Date of Purchase Units January 10 6,000 January 18 8,000 Totals 14,000 Purchases Unit Cost* $ 9 10 Total Cost $ 54,000 80,000 Includes purchase price and cost of freight. $ 134,000 Sales Date of Sale Units January 5 4,000 January 12 2,000 January 20 5,000 Total 11,000 11,000 units were on hand at the end of the month. Problem 8-5 (Algo) Part 1 Required: 1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system. es 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Ending Inventory - Periodic LIFO LIFO Number Cost per Cost of Goods Number of Cost per of units unit Available for units sold unit Cost of Goods Sold: Number of units in Cost per ending unit Ending Inventory Sale Inventory Beginning Inventory 8,000 $ 8.00 $ 64,000 0 $ 8.00 $ 0 0 $ 8.00 $ 0 Purchases: January 10 6,000 $9.00 54,000 0 $ 9.00 0 0 $ 9.00 0 January 18 8,000 $ 10.00 80,000 0 $ 10.00 0 0 $ 10.00 0 Total 22,000 $ 198,000 0 $ 0 0 $ 0 Problem 8-5 (Algo) Part 3 3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system. Cost of Goods Available for Sale Cost of Goods Sold - January 5 Cost of Goods Sold - January 12 Perpetual FIFO: Number Unit of units Cost Cost of Goods Available for Sale Number of units sold Cost per unit Cost of Goods Sold Number of units sold Cost per unit Cost of Goods Sol Beginning Inventory 8,000 $ 8.00 $ 64,000 4,000 $ 8.00 $ 32,000 2,000 $ 8.00 $ 16,00 Purchases: January 10 6,000 9.00 54,000 0 9.00 0 9.00 January 18 8,000 10.00 80,000 0 10.00 0 10.00 C Total 22,000 $ 198,000 4,000 $ 32,000 2,000 $ 16,000 4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system. Cost of Goods Available for Sale Cost of Goods Sold Average Cost Ending Inventory - Average Cost Average Cost Number of units Unit Cost Cost of Goods Available for Sale Number of units sold Average Cost per Unit Cost of Goods Sold Number of units in ending Inventory Average Cost per unit Ending Inventory Beginning Inventory 8,000 $ 8.00 $ 64,000 Purchases: January 10 6,000 $9.00 54,000 January 18 8,000 $10.00 80,000 Total 22,000 $ 198,000 $ 0 + $ 0