Required information Problem 8-5 (Algo) Various inventory costing methods (L08-1, 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. 10 Jan. 18 Totals Units 6,000 9,000 15,000 Purchases Unit Cost $ 6 7 Total Cost $36,000 63,000 99,000 * Includes purchase price and cost of freight. Sales Date of Sale Jan. 5 Jan. 12 Jan. 20 Total Units 5,000 3,000 5,000 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 Cost of Goods Sold - Periodic FIFO Ending Inventory Periodic FIFO EJEO Cont of Goods Available for Sale Cost of of units Cost per Goods unit Available for Sale 9,000 $5.00 $ 45.000 W of units sold Cost per unit Cost of Goods Sold # of units In ending Inventory Cost per unit Ending Inventory $ 5.00 $ 0 5 5.00 5 Beginning inventory Purchase January 10 January 10 Tot $ 6.000 $6.00 9,000 $ 700 24,000 33.XX 63.000 144,000 5 $ 000 7.00 500 700 $ 0 5 0 0 0 $ 0 $ 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 LIFO Cost of Goods Available for Sale Cost of Cost per Goods #of units unit Available for Sale 9,000 $ 5.00 $ 45.000 # of units sold Cost per unit Cost of Goods Sold Ending Inventory . Periodic LIFO #of units Cost per In ending Ending unit inventory Inventory $ 5.00 $ 0 s 5.00 $ 0 Beginning Inventory Purchases January 10 January 18 Total $ 0 6,000 $ 6.00 9,000 $ 700 24,000 36,000 63.000 144,000 6.00 7.00 $ OOO $ 5 8.00 700 0 S 0 $ 0 $ 0