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Required information Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4) [The following information applies to the questions displayed below.) Ferris Company began January with 8,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows: Date of Purchase Jan. 10 Jan. 18 Totals Units 6,000 8,000 14,000 Purchases Unit Cost* $ 9 10 Total Cost $ 54,000 80,000 134,000 * Includes purchase price and cost of freight. Sales Date of Sale Jan. 5 Jan. 12 Jan. 20 Total Units 4,000 2,000 5,000 11,000 Problem 8-5 (Algo) Part 3 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 Cost of Goods Sold - January 20 Perpetual FIFO: # of units Unit Cost Cost of Goods # of Available for units Sale sold $ 64,000 4,000 Cost per unit | Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold # of units Cost per sold unit Cost of Goods Sold # of in e inv $ 8.00 $ 8.00 $ 32,000 2,000 $ 8.00 $ 16,000 2,000 $ 8.00 $ 16,000 Beg. Inventory 1 8,000 Purchases: January 106 ,000 | January 18 I 8,000 Total 22,000 9 9 3,000 9.00 10.00 54,000 80.000 198,000 0 0 4,000 .00 10. 00 0 0 32,000 .00 10. 00 0 0 16,000 9.00 10. 00 27,000 0 43,000 $ $ 2,000 $ 5,000 $ month using FIFO, perpetual system. nuary 5 Cost of Goods Sold - January 12 Cost of Goods Sold - January 20 Inventory Balance Cost of ods Sold # of units sold Cost per unit Cost of Goods Sold # of units sold Cost per unit # of units Cost of Goods Sold in ending inventory $ 16,000 Cost per unit Ending Inventory 32,000 2,000 $ 8.00 $ 16,000 2,000 $ 8.00 $ 8.00 $ 0 9 3,000 . 000 10.00 $ 16,000 9.00 10.00 27,000 0 43,000 9.00 10.00 8,000 8,000 80,000 80,000 32,000 2,000 5,000 $ $