part1
part2
part3
part4
part5
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 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 Total 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 Problem 8-5 (Algo) Part 1 Required: 1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system. Ending Inventory - Periodic FIFO FIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Cost of Cost per Goods # of units # of units Cost of unit Available for sold unit Goods Sold Sale 9,000 $ 4.00 $ 36,000 9,000 $ 4.00 $ 36,000 Cost per Cost per # of units in ending inventory unit Ending Inventory $ 4.00 $ 0 Beginning Inventory Purchases: January 10 January 18 Total 0 $ 6,000 $ 5.00 9,000 $ 6.00 24,000 $ S 5.00 30,000 54,000 120,000 5.00 6.00 0 $ 6.00 OOO $ 9.000 $ 36,000 0 $ Problem 8-5 (Algo) Part 2 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 # of units Goods unit Available for Sale 9,000 $4.00 $ 36,000 # of units sold Cost per Cost of Goods Sold Cost per unit # of units in ending inventory unit Ending Inventory 0 S 4.00 $ 0 $ 4.00 $ 0 Beginning Inventory Purchases: January 10 January 18 Total $ $ 6,000 $ 5.00 9,000 $ 6.00 24,000 30,000 54,000 120,000 5.00 6.00 0 Do $ 5.00 6.00 $ 0 $ 0 $ 0 Problem 8-5 (Algo) Part 3 Calculate January's ending inventory and cost of goods sold for the month using FIFO perpetual system Cost of Goods Sold-January 5 Cost of Goods Sold January 12 Cost of Goods Sold - January 20 Inventory! Perpetual FIFO of Cost of Goods Available for Sale Cost of of Unit Goods units Cost Available for Sale 9.000 $4.00 30.000 Cost per und Cost of Goods Sold of units Cost per sell Cost of Goods Sold of its Cost per sold Unt Cost of Goods Sold sold Cast: of units in ending Inventory 4.00 0 2005 0 4005 0 $ 4 Beg Inventory Purchase January 10 January 18 Total 6.000 9.000 24.000 5.00 6.00 30.000 54000 120.000 5.00 6.00 3 0 O 5.00 0.00 0 0 5.00 11.00 0 o 0 5 0 5 0 $ 0 0 Problem 8-5 (Algo) Part 4 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 Ending Inventory - Average Cost Cost of Unit Goods # of units Average # of units Cost of Average of units Cost per Ending Cost per Cost Available for sold Goods Sold in ending Sale Inventory Unit Inventory unit 9.000 $ 4.00 $ 36,000 Beginning Inventory Purchases: January 10 January 18 Total 6,000 $5,00 9,000 $ 6.00 24,000 30.000 54,000 120,000 $ S 0 Problem 8-5 (Algo) Part 5 5. Calculate January's ending inventory and cost of goods sold for the month using Average cost per unit to 4 decimal places. Enter sales with a negative sign.) Inventory on hand Cost of Goods Sold Perpetual Average # of units Cost per unit Inventory Value # of units sold Avg.Cost per unit Cost of Goods Sold $ $ 0 0 0 0 0 0 O Beginning Inventory Sale - January 5 Subtotal Average Cost Purchase - January 10 Subtotal Average Cost Sale - January 12 Subtotal Average Cost Purchase - January 18 Subtotal Average Cost Sale - January 20 Total 0 0 0 0 0 0 0 $ 0 $ 0
