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 9,000 units of its principal product. The cost of each unit is $5. Merchandise transactions for the month of January are as follows: Purchases Date of Purchase Jan. 10 Jan. 18 Totals Units 6,000 Unit Cost* $ 6 9,000 7 15,000 * Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 5,000 Jan. 12 3,000 Jan. 20 6,000 Total 14,000 10,000 units were on hand at the end of the month. Total Cost $36,000 63,000 99,000 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 Inventory Balance Perpetual FIFO: # of units Unit Cost Cost of Goods Available for Sale # of units sold # of units Cost per unit Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold # of units Cost per sold unit Cost of Goods Sold in ending inventory Cost per unit Ending Inventory Beg. Inventory 9,000 $5.00 $ 45,000 $ 5.00 $ 5.00 $ 5.00 $ 5.00 0 Purchases: January 10 6,000 6.00 36,000 6.00 January 18 9,000 7.00 63,000 7.00 6.00 0 6.00 6.00 7.00 0 7.00 0 7.00 Total 24,000 $ 144,000 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 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 Purchases Units Unit Cost* 6,000 $ 6 Total Cost $36,000 9,000 7 15,000 63,000 99,000 * Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 5,000 Jan. 12 3,000 Jan. 20 6,000 Total 14,000 10,000 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. Ending Inventory - Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO LIFO # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning Inventory 9,000 $5.00 $ 45,000 $ 5.00 $ 0 $ 5.00 $ 0 Purchases: January 10 6,000 $ 6.00 36,000 69 $ 6.00 0 69 6.00 0 January 18 Total 9,000 24,000 $ 7.00 63,000 $ 7.00 0 $ 7.00 0 $ 144,000 0 $ 0 0 $ 0