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 $5. Merchandise transactions for the month of January are as follows: Date of Purchase Jan. 19 Jan. 18 Totals Units 6,080 9, eee 15, cee Purchases Unit Cost $ 6 7 Total Cost $36,080 63,000 99,000 * Includes purchase price and cost of freight. Sales Date of Sale Jan. 5 Jan. 12 Jan. 20 Total Units 5, eee 3,000 6, eee 14,000 10,000 units were on hand at the end of the month. 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 Goods # of units unit Available for Sale 9.000 $ 5.00 S 45,000 Cost per # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory unit Ending Inventory S 5.00 S 0 S 5.00 S Beginning Inventory Purchases: January 10 January 18 Total 6,000 S 0 s 6.00 0 $ 6.00 $ 7.00 36,000 63.000 144,000 6.00 7.00 s 0 S 9,000 24,000 7.00 S s 0 $ 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 Inventory Balance Perpetual FIFO: # of units Unit Cost Cost of Goods Available for Sale # of units sold Cost per unit Cost of # of units Cost per Goods Sold 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 9,000 $ 5.00 S 45,000 $ 5.00 $ 0 S 5.00 $ 0 $ 5.00 $ 0 S 5.00 $ 0 Beg. Inventory Purchases: January 10 January 18 Total 36.000 0 0 6.00 6,000 9,000 6.00 7.00 8.00 7.00 6.00 7.00 8.00 7.00 0 0 7.00 0 0 63,000 144,000 24,000 S 0 S 0 0 S 0 0 $ 0 1 0 0 s 0 4. Calculate January's ending Inventory and cost of goods sold for the month using Average cost, periodic system. Ending Inventory - Average Cost Average Cost Cost of Goods Available for Sale Cost of Goods Sold - Average Cost Cost of Unit Goods # of units Average # of units Cost per Cost of Cost Available for sold Unit Goods Sold Sale # of units in ending inventory Average Cost per unit Ending Inventory 9.000 $ 5.00 S 45,000 Beginning Inventory Purchases: January 10 January 18 Total 6,000 9,000 $ 6.00 $ 7.00 36,000 63.000 144,000 24,000 S S S 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 per Inventory # of units unit Value Cost of Goods Sold # of units Avg.Cost Cost of sold per unit Goods Sold $ 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 s 0 0 S 0
