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Please help!! Thank you! Ferris Company began January with 7,000 units of its principal product. The cost of each unit is $6. Merchandise transactions for
Please help!! Thank you!
Ferris Company began January with 7,000 units of its principal product. The cost of each unit is $6. Merchandise transactions for the month of January are as follows: Purchases Unit Cost $ 7 Date of Purchase Jan. 10 Jan. 18 Totals Units 6,000 7,000 13,000 Total Cost $42,000 56,000 98,000 8 Includes purchase price and cost of freight Sales Date of Sale Jan. 5 Jan. 12 Jan. 20 Units 3,000 3,000 4,000 10,000 Total 10,000 units were on hand at the end of the month. Required: Calculate January's ending inventory and cost of goods sold for the month using each of the following alternatives: 1. FIFO, periodic system. 2. LIFO, periodic system. 3. LIFO, perpetual system. 4. Average cost, periodic system. 5. Average cost, perpetual system. 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 Cost per Cost of # of units unit Available for sold unit Goods Sold Sale 7,000 $ 6.00 $ 42,000 $ 6.00 $ 0 # of units in ending inventory Cost per unit Ending Inventory $ 6.00 $ 0 Beginning Inventory Purchases: January 10 January 18 Total $ 0 6,000 $ 7.00 7,000 $ 8.00 20,000 42,000 56,000 140,000 $ $ 7.00 8.00 0 0 7.00 8.00 GA $ 0 0 $ CA 0 0 $ HA 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. LIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Cost of Cost per Goods # of units Cost per Cost of # of units unit Available for sold unit Goods Sold Sale 7,000 $ 6.00 $ 42,000 $ 6.00 $ 0 Ending Inventory - Periodic LIFO # of units Cost per Ending in ending unit Inventory inventory $ 6.00 $ 0 Beginning Inventory Purchases: January 10 January 18 Total $ 7.00 0 $ 0 6,000 $ 7.00 7,000 $ 8.00 20,000 42,000 56,000 140,000 $ $ 7.00 8.00 $ 8.00 0 $ 0 $ CA 0 0 $ 0 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 Balance Perpetual FIFO: Cost of Goods Available for Sale Cost of # of Unit Goods units Cost Available for Sale 7,000 $ 6.00 $ 42,000 # of units sold Cost per unit Cost of Goods Sold # of units Cost per sold unit Cost of Goods Sold # of units Cost per sold unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory $ 6.00 $ 0 $ 6.00 $ 0 $ 6.00 $ 0 $ 6.00 $ 0 Beg. Inventory Purchases: January 10 January 18 Total 6,000 0 7.00 01 0 0 7.00 8.00 42,000 56,000 140.000 7.00 8.00 7.00 8.00 7.00 8.00 0 8.00 0 0 7,000 20,000 0 $ 0 $ $ 0 0 $ 0 0 $ 0 0 $ 0 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 Unit Goods # of units Cost Available for Sale 7,000 $ 6.00 $ 42,000 Cost of Goods Sold - Average Cost # of units Average Cost of Cost per sold Goods Sold Unit Ending Inventory - Average Cost # of units Average Ending in ending Cost per Inventory inventory unit Beginning Inventory Purchases: January 10 January 18 Total 6,000 $ 7.00 7,000 $ 8.00 20,000 42,000 56,000 140,000 $ $ 0 $ 0 5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system. (Round average cost per unit to 4 decimal places. Enter sales with a negative sign.) Perpetual Average Inventory on hand Cost of Goods Sold Cost per Inventory # of units Avg.Cost Cost of # of units unit Value sold per unit Goods Sold $ 0 0 0 0 0 0 0 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 0 0Step by Step Solution
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