Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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: Date of Purchase Jan. 10 Jan. 18 Totals Units 6,000 7,000 13,000 Purchases Unit Cost $ 8 9 Total Cost $ 48,000 63,000 111,000 * Includes purchase price and cost of freight Sales Date of Sale Jan. 5 Jan. 12 Jan. 20 Total Units 3,000 1,000 4,000 8,000 12,000 units were on hand at the end of the month. 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 Goods # of units Cost per Cost of unit Available for sold unit Goods Sold Sale 7,000 $ 7.00 $ 49,000 0 $ 7.00 $ 0 of units Cost per # of units in ending inventory Cost per unit Ending Inventory 0 $ 7.00 $ 0 Beginning Inventory Purchases January 10 January 18 Total 6,000 $ 8.00 0 $ 8.00 0 0 8.00 0 $ 0 $ 7,000 48.000 63,000 160,000 $ 9.00 $ 9.00 0: 9.00 0 0 0 20,000 $ $ 0 0 $ 0 Required information (The following information applies to the questions displayed below.) 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: Date of Purchase Jan. 10 Jan. 19 Totals Units 6,000 7,000 13,000 Purchases Unit Cost $8 9 Total Cost $ 48,000 63,000 111,000 Includes purchase price and cost of freight. Sales Date of Sale Jan. 5 Jan. 12 Jan. 20 Total Units 3,000 1,000 4,000 8,000 12,000 units were on hand at the end of the month. 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. LIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Cost of Goods # of units Cost per Cost of unit Available for sold unit Goods Sold Sale 7,000 $ 7.00 $ 49,000 7.00 Ending Inventory . Periodic LIFO # of units Cost per in ending Ending inventory unit Inventory of units Cost per $ $ 7.00 Beginning Inventory Purchases: January 10 January 18 Total $ $ 6,000 S 8.00 7,000 S 9.00 20,000 48,000 63,000 $ 160,000 8.00 9.00 8.00 9.00 $ $ 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 63,000 Totals 13,000 111.000 Includes purchase price and cost of freight Sales Date of sale Unita Jan. 5 Jan. 12 1,000 Jan. 20 4.000 Total 8,000 12,000 units were on hand at the end of the month. Cost of Goods sold . January 20 Inventory Balance of units Cost per sold unit Cost of Goods Sold of units in ending Inventory Cost per 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: Cost of Una Goods Cost per Cost of of units Cost per Cost of Cost Available for unit Goods Sold sold unit Goods Sold Sale Beg. Inventory 7.000 $ 7.00 $ 49.000 7.00 $ 7.00 Purchases January 10 6.000 8.00 48.000 8.00 0 January 18 7,000 9.00 63,000 9.00 0 Total 20,000 160,000 Ending Inventory $ 7.00 $ 7.00 $ . 8.00 9.00 8.00 9.00 0 $ 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 Unit Cost Date of Purchase Jan. 10 Jan. 18 Totals Units 6,000 7,000 13,000 Total Cost $ 48,000 63,000 111,000 9 * Includes purchase price and cost of freight Sales Date of Sale Jan. 5 Jan. 12 Jan. 20 Total Units 3,000 1,000 4,000 8,000 12,000 units were on hand at the end of the month. 4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system. Average Cost Cost of Goods Available for Sale Cost of Goods Sold - Average Cost Cost of Average # of units Unit # of units Goods Cost per Cost of Cost Available for sold Unit Goods Sold Sale 7,000 $ 7.00 $ 49,000 Ending Inventory - Average Cost # of units Average in ending Cost per Ending inventory unit Inventory Beginning Inventory Purchases: January 10 January 18 Total 6,000 $ 8.00 7,000 $ 9.00 20,000 48,000 63.000 160,000 $ 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: Purchase Unit Cost Date of Purchase Jan. 10 Jan. 10 Totals Units 6,000 7,000 13,000 Total Cost $ 48,000 63,000 111.000 * Includes purchase price and cost of freight. Sales Date of sale Jan. 5 Jan. 12 Jan. 20 Total Units 3,000 1,000 4,000 8,000 12,000 units were on hand at the end of the month. 5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system. (Round average cost per unit to 4 decimal places. Enter sales with a negative sign.) Perpetual Average Inventory on hand of units Cost per Inventory unit Value Cost of Goods Sold of units Avg.Cost Cost of sold per unit Goods Sold 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Principles And Techniques

Authors: Prof. A.R. Solanki

1st Edition

9350533979, 9789350533970

More Books

Students also viewed these Accounting questions