Required information Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4] [The following information applies to the questions displayed below.] A company began January with 8,000 units of its principal product. The cost of each unit is $6. Inventory transactions for the month of January are as follows: Date of Purchase Units January 10 6,000 Purchases Unit Cost* $ 7 Total Cost January 18 8,000 8 $ 42,000 64,000 Totals 14,000 $ 106,000 * Includes purchase price and cost of freight. Sales Date of Sale Units January 5 4,000 January 12 2,000 January 20 4,000 Total 10,000 12,000 units were on hand at the end of the month. Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO FIFO Number of units Cost per unit Cost of Goods Available for Sale 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 Number of units in Number of Cost per units sold unit Cost of Goods Sold Cost per Ending ending unit Inventory inventory Beginning Inventory 8,000 $6.00 $ 48,000 $ 6.00 $ 0 $ 6.00 $ 0 Purchases: January 10 6,000 $ 7.00 42,000 $ 7.00 0 $ 7.00 0 January 18 8,000 $ 8.00 64,000 $ 8.00 0 $ 8.00 0 Total 22,000 $ 154,000 0 $ 0 0 $ Required information Problem 8-5 (Algo) Various inventory costing methods (LO8-1, 8-4] [The following information applies to the questions displayed below.] A company began January with 8,000 units of its principal product. The cost of each unit is $6. Inventory transactions for the month of January are as follows: Date of Purchase Units January 10 6,000 Purchases Unit Cost $ 7 Total Cost $ 42,000 January 18 8,000 8 64,000 Totals 14,000 $ 106,000 * Includes purchase price and cost of freight. Sales Date of Sale Units January 5 4,000 January 12 2,000 January 201 4,000 Total 10,000 12,000 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. Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO LIFO Number Cost per of units unit Cost of Goods Available for Sale Number of Cost per units sold unit Cost of Goods Sold Ending Inventory - Periodic LIFO Number of units in ending Cost per unit Ending Inventory inventory Beginning Inventory 8,000 $6.00 $ 48,000 $ 6.00 $ 0 $ 6.00 $ 0 Purchases: January 10 January 18 6,000 $ 7.00 42,000 $ 7.00 0 $ 7.00 0 8,000 $8.00 64,000 $ 8.00 0 $ 8.00 0 Total 22,000 $ 154,000 0 $ 0 $ 0 Required information Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4] [The following information applies to the questions displayed below.] A company began January with 8,000 units of its principal product. The cost of each unit is $6. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Units 6,000 8,000 Purchases Unit Cost Total Cost $ 7 $ 42,000 8 64,000 Totals 14,000 $ 106,000 *Includes purchase price and cost of freight. Sales Date of Sale Units January 5 4,000 January 12 2,000 January 20 4,000 Total 10,000 12,000 units were on hand at the end of the month. Problem 8-5 (Algo) Part 3 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 Perpetual FIFO: Number of units Cost Unit Cost of Goods Available for Sale Number of units sold Cost per unit Cost of Goods Sold Number of units Cost per unit Cost of Goods Sold Number of units Cost per unit Cost of Goods Sold sold sold Number of units in ending inventory Inventory Balance Cost per unit Ending Inventory Beginning Inventory 8,000 $6.00 $ 48,000 $ 6.00 S 0 $ 6.00 $ 0 $ 6.00 $ 0 $ 6.00 $ 0 Purchases: January 10 January 18 Total 6,000 8,000 22,000 7.00 8.00 42,000 7.00 0 7.00 0 7.00 0 7.00 0 64,000 8.00 0 8.00 8.00 0 8.00 0 $ 154,000 0 $ 0 0 $ 0 0 $ 0 0 $ 0 ! Required information Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4] [The following information applies to the questions displayed below.] A company began January with 8,000 units of its principal product. The cost of each unit is $6. Inventory transactions for the month of January are as follows: Date of Purchase Units Purchases Unit Cost* Total Cost January 10 6,000 $ 7 $ 42,000 January 18 8,000 8 64,000 Totals 14,000 $ 106,000 * Includes purchase price and cost of freight. Sales Date of Sale Units January 5 4,000 January 12 2,000 January 20 4,000 Total 10,000 12,000 units were on hand at the end of the month. 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 Unit Cost of Goods Available for Sale Cost of Goods Sold - Average Cost Average Cost Number of units Unit Cost Cost of Goods Available for Sale Number of Cost per units sold Cost of Goods Sold Beginning Inventory 8,000 $6.00 $ 48,000 Purchases: January 10 6,000 $ 7.00 42,000 January 18 8,000 $ 8.00 64,000 Total 22,000 $ 154,000 0 Ending Inventory - Average Cost Number of units in ending inventory Average Cost per unit Ending Inventory 0 Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4] [The following information applies to the questions displayed below.] A company began January with 8,000 units of its principal product. The cost of each unit is $6. Inventory transactions for the month of January are as follows: Date of Purchase Units January 10 6,000 Purchases Unit Cost* $ 7 Total Cost January 18 8,000 8 $ 42,000 64,000 Totals 14,000 $ 106,000 * Includes purchase price and cost of freight. Sales Date of Sale Units January 5 4,000 January 12 2,000 January 20 4,000 Total 10,000 12,000 units were on hand at the end of the month. Problem 8-5 (Algo) Part 5 5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system. Note: Round average cost per unit to 4 decimal places. Enter sales with a negative sign. Cost of Goods Sold Inventory on hand Perpetual Average Number of units Cost per unit Inventory Value Number of units sold Average Cost per Cost of Goods Sold unit Beginning Inventory $ 0 Sale - January 5 0 Subtotal Average Cost 0 0 Purchase - January 10 0 Subtotal Average Cost 0 0 Sale - January 12 0 Subtotal Average Cost 0 0 Purchase January 18 0 Subtotal Average Cost 0 0 Sale - January 20 0 Total 0 $ 0 0 $ 0