8-5 (Algo) Various inventory costing methods [LO8-1, 8-4] [The following information applies to the questions displayed below.] Ferris Company began January with 9,000 units of its principal product. The cost of each unit is $5. Merchandise transactions for the month of January are as follows: Date of Purchase Jan. 10 Jan. 18 Totals Purchases Units Unit Cost* Total Cost 6,000 $ 6 $36,000 9,000 7 63,000 15,000 99,000 * Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 5,000 Jan. 12 3,000 Jan. 20 6,000 Total 14,000 10,000 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. Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Ending Inventory - Periodic FIFO FIFO # of units Cost per unit Cost of Goods Available for # of units sold Cost per unit Cost of Goods Sold # of units in ending Cost per unit Ending Inventory inventory Sale Beginning Inventory 9,000 $ 5.00 $ 45,000 $ 5.00 $ 5.00 Purchases: January 10 6,000 $ 6.00 36,000 $ 6.00 $ 6.00 January 18 9,000 $7.00 63,000 69 $ 7.00 $ 7.00 Total 24,000 $ 144,000