Question
Ferris Company began January with 9,000 units of its principal product. The cost of each unit is $8. 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 $8. Merchandise transactions for the month of January are as follows:
Purchases | |||||||||
Date of Purchase | Units | Unit Cost* | Total Cost | ||||||
Jan. 10 | 6,000 | $ | 9 | $ | 54,000 | ||||
Jan. 18 | 9,000 | 10 | 90,000 | ||||||
Totals | 15,000 | 144,000 | |||||||
* Includes purchase price and cost of freight.
Sales | ||
Date of Sale | Units | |
Jan. 5 | 5,000 | |
Jan. 12 | 3,000 | |
Jan. 20 | 6,000 | |
Total | 14,000 | |
10,000 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.
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2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system.
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3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.
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