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Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4] Skip to question [The following information applies to the questions displayed below.] Ferris Company began January
Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4]
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[The following information applies to the questions displayed below.] Ferris Company began January with 6,000 units of its principal product. The cost of each unit is $7. Merchandise transactions for the month of January are as follows:
Purchases | |||||||||
Date of Purchase | Units | Unit Cost* | Total Cost | ||||||
Jan. 10 | 5,000 | $ | 8 | $ | 40,000 | ||||
Jan. 18 | 6,000 | 9 | 54,000 | ||||||
Totals | 11,000 | 94,000 | |||||||
* Includes purchase price and cost of freight.
Sales | ||
Date of Sale | Units | |
Jan. 5 | 3,000 | |
Jan. 12 | 2,000 | |
Jan. 20 | 4,000 | |
Total | 9,000 | |
8,000 units were on hand at the end of the month.
Problem 8-5 (Algo) Part 2
2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system.
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 6,000 units of its principal product. The cost of each unit is $7. Merchandise transactions for the month of January are as follows: Purchases Unit Cost* Date of Purchase Jan. 10 Jan. 18 Units 5,000 6,000 11,000 9 Total Cost $40,000 54,000 94,000 Totals * Includes purchase price and cost of freight. Sales Date of Sale Jan. 5 Jan. 12 Jan. 20 Total Units 3,000 2,000 4,000 9,000 8,000 units were on hand at the end of the month. Problem 8-5 (Algo) Part 2 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 # of units Goods # of units Cost per Cost of unit Available for sold unit Goods Sold Sale 6,000 $ 7.00 $ 42,000 7.00 Ending Inventory - Periodic LIFO # of units in ending Cost per Ending unit inventory Inventory HA $ 7.00 Beginning Inventory Purchases: January 10 January 18 Total $ GA 8.00 5,000 $ 8.00 6,000 $ 9.00 17,000 40,000 54,000 136,000 $ $ 8.00 9.00 $ $ 9.00 $
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