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Ferris Company began January with 9,000 units of its principal product. The cost of each unit is $4. Merchandise transactions for the month of January
Ferris Company began January with 9,000 units of its principal product. The cost of each unit is $4. Merchandise transactions for the month of January are as follows: Date of Purchase Jan. 10 Jan. 18 Totals Units 6,000 9,000 15,000 Purchases Unit Cost* $ 5 6 Total Cost $30,000 54,000 84,000 * Includes purchase price and cost of freight Sales Date of Sale Jan. 5 Jan. 12 Jan. 20 Total Units 5,000 3,000 6,000 14,000 10,000 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 Unit # of units Goods Cost of # of units Cost Cost per Available for sold Unit Goods Sold Sale 9,000 $ 4.00 $ 36,000 Ending Inventory - Average Cost # of units Average in ending Cost per Ending Inventory inventory unit Beginning Inventory Purchases: January 10 January 18 Total 6,000 $ 5.00 9,000 $ 6.00 24,000 30,000 54,000 120,000 $ $ $ 0
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