Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Ferris Company began January with 8,000 units of its principal product. The cost of each unit is $9. Merchandise transactions for the month of January
Ferris Company began January with 8,000 units of its principal product. The cost of each unit is $9. Merchandise transactions for the month of January are as follows:
Purchases | |||||||||
Date of Purchase | Units | Unit Cost* | Total Cost | ||||||
Jan. 10 | 5,000 | $ | 10 | $ | 50,000 | ||||
Jan. 18 | 8,000 | 11 | 88,000 | ||||||
Totals | 13,000 | 138,000 | |||||||
* Includes purchase price and cost of freight.
Sales | ||
Date of Sale | Units | |
Jan. 5 | 3,000 | |
Jan. 12 | 3,000 | |
Jan. 20 | 4,000 | |
Total | 10,000 | |
11,000 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. Cost of Goods Sold - Periodic LIFO Ending Inventory - Periodic LIFO LIFO Cost of Goods Available for Sale Cost of Cost per Goods # of units unit Available for Sale 8,000 $ 9.00 $ 72.000 # of units sold Cost per Cost per Cost of Goods Sold # of units in ending inventory Ending Inventory unit unit $ 9.00 $ 0 $ 9.00 $ 0 Beginning Inventory Purchases: January 10 January 18 Total $ 10.00 0 $ 10.00 5,000 8,000 21,000 $10.00 $ 11.00 50,000 88,000 210,000 $ 11.00 0 $ 11.00 O100 $ 0 $ 0 0 $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