Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

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

Introductory Accounting Finance And Auditing For Lawyers

Authors: Lawrence A. Cunningham

5th Edition

0314912606, 978-0314912602

More Books

Students also viewed these Accounting questions