Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Ferris Company began 2011 with 6,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January
Ferris Company began 2011 with 6,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January 2011 are as follows: Purchases Date of Purchase Units Unit Cost* Total Cost Jan. 10 5,000 $ 9 $ 45,000 Jan. 18 6,000 10 60,000 Totals 11,000 $ 105,000 * Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 3,000 Jan. 12 2,000 Jan. 20 4,000 Total 9,000 8,000 units were on hand at the end of the month. Required: Calculate January's ending inventory and cost of goods sold for the month using each of the following alternatives (Omit the "$" sign in your response): Alternative Ending Inventory Cost of Goods Sold 1. FIFO, periodic system $ $ 2. LIFO, periodic system $ $ 3. LIFO, perpetual system $ $ 4. Average cost, periodic system $ $ 5. Average cost, perpetual system $ $ need to find each ending inventory and costs of goods sold
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started