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Ferris Company began January with 7,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January
Ferris Company began January with 7,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows: Purchases Date of Purchase Units Unit Cost* Total Cost Jan. 10 4,000 $ 9 $ 36,000 Jan. 18 7,000 10 70,000 Totals 11,000 106,000 * Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 3,000 Jan. 12 1,000 Jan. 20 4,000 Total 8,000 10,000 units were on hand at the end of the month. 1 Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system. 2 Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system. Perpetual Average Inventory on hand Cost of Goods Sold # of units Cost per unit Inventory Value # of units sold Avg.Cost per unit Cost of Goods Sold Beginning Inventory $0 Sale - January 5 0 Subtotal Average Cost 0 0 Purchase - January 10 0 Subtotal Average Cost 0 0 Sale - January 12 0 Subtotal Average Cost 0 0 Purchase - January 18 0 Subtotal Average Cost 0 0 Sale - January 20 0 Total 0 $0 0 $0
Ferris Company began January with 7,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows:
Purchases
Date of Purchase Units Unit Cost* Total Cost
Jan. 10 4,000 $ 9 $ 36,000
Jan. 18 7,000 10 70,000
Totals 11,000 106,000
* Includes purchase price and cost of freight.
Sales
Date of Sale Units
Jan. 5 3,000
Jan. 12 1,000
Jan. 20 4,000
Total 8,000
10,000 units were on hand at the end of the month.
1 Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.
2 Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system.
Perpetual Average Inventory on hand Cost of Goods Sold
# of units Cost per unit Inventory Value # of units sold Avg.Cost per unit Cost of Goods Sold
Beginning Inventory $0
Sale - January 5 0
Subtotal Average Cost 0 0
Purchase - January 10 0
Subtotal Average Cost 0 0
Sale - January 12 0
Subtotal Average Cost 0 0
Purchase - January 18 0
Subtotal Average Cost 0 0
Sale - January 20 0
Total 0 $0 0 $0
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
9th Canadian Edition, Volume 2
470964731, 978-0470964736, 978-0470161012
