Ferris Company began January with 7,000 units of its principal product. The cost of each unit is $7. 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 $7. Merchandise transactions for the month of January are as follows:
| | Purchases |
| Date of Purchase | Units | | Unit Cost* | Total Cost |
| Jan. 10 | 6,000 | | $ | 8 | | | $ | 48,000 | |
| Jan. 18 | 7,000 | | | 9 | | | | 63,000 | |
| Totals | 13,000 | | | | | | | 111,000 | |
| |
* 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 | |
| |
12,000 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, periodic system.
2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system.
3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.
4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system.
5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system
Required: 1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system. Ending Inventory - Periodic FIFO FIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Cost of Cost per Goods # of units Cost per Cost of # of units unit Available for sold unit Goods Sold Sale 7,000 $ 7.00 $ 49,000 $ 7.00 # of units in ending inventory Cost per unit Ending Inventory $ 7.00 Beginning Inventory Purchases: January 10 January 18 Total $ 8.00 8.00 6,000 $ 8.00 7,000 $ 9.00 20,000 48,000 63,000 160,000 $ $ $ 9.00 9.00 $ Required: 1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system. Ending Inventory - Periodic FIFO FIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Cost of Cost per Goods # of units Cost per Cost of # of units unit Available for sold unit Goods Sold Sale 7,000 $ 7.00 $ 49,000 $ 7.00 # of units in ending inventory Cost per unit Ending Inventory $ 7.00 Beginning Inventory Purchases: January 10 January 18 Total $ 8.00 8.00 6,000 $ 8.00 7,000 $ 9.00 20,000 48,000 63,000 160,000 $ $ $ 9.00 9.00 $ Cost of Goods Available for Sale Cost of Goods Sold - January 5 Cost of Goods Sold - January 12 Cost of Goods Sold - January 20 Inventory Balance Perpetual FIFO: # of units sold Cost of # of Unit Goods units Cost Available for Sale 7,000 $ 7.00 $ 49,000 Cost per unit Cost per Cost of Goods Sold # of units Cost per sold unit Cost of Goods Sold # of units Cost per sold unit Cost of Goods Sold # of units in ending inventory Ending Inventory unit $ 7.00 $ 0 $ 7.00 $ 0 $ 7.00 $ 0 $ 7.00 $ 0 Beg. Inventory Purchases: 8.00 8.00 0 8.00 0 8.00 0 8.00 0 January 10 January 18 Total 6,000 7,000 20,000 9.00 48,000 63,000 160,000 9.00 0 9.00 0 9.00 0 0 9.00 0 $ 0 $ 0 0 0 $ 0 0 $ 0 0 $ 0 Cost of Goods Sold - Average Cost Average Cost Cost of Goods Available for Sale Cost of Unit # of units Goods Cost Available for Sale 7,000 $ 7.00 $ 49,000 # of units sold Average Cost per Unit Cost of Goods Sold Ending Inventory - Average Cost # of units Average Ending in ending Cost per Inventory inventory unit Beginning Inventory Purchases: January 10 January 18 Total 6,000 $ 8.00 7,000 $ 9.00 20,000 48,000 63,000 160,000 $ Inventory on hand Perpetual Average Cost per unit # of units Cost of Goods Sold # of units Avg.Cost Cost of sold per unit Goods Sold Inventory Value 0 0 0 0 0 0 0 Beginning Inventory Sale - January 5 Subtotal Average Cost Purchase - January 10 Subtotal Average Cost Sale - January 12 Subtotal Average Cost Purchase - January 18 Subtotal Average Cost Sale - January 20 Total 0 0 0 0 0 0 0 0 $ 0 0 0
