Required information [The following information applies to the questions displayed below.) Ferris Company began January with 7,000 units of its principal product. The cost of each unit is $6. Merchandise transactions for the month of January are as follows: Date of Purchase Jan. 10 Jan. 18 Totals Units 6,000 7,000 13,000 Purchases Unit Cost* $ 7 8 Total Cost $42,000 56,000 98,000 * Includes purchase price and cost of freight. Sales Date of Sale Jan. 5 Jan 12 Jan. 20 Total Units 3,000 1,000 4,000 8,000 12,000 units were on hand at the end of the month. 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 FIFO Cost per Cost per Cost per Cost of Goods Available for Sale Cost of # of units Goods unit Available for Sale 7,000 $ 6.00 $ 42,000 # of units sold Cost of Goods Sold # of units in ending inventory unit unit Ending Inventory $ 6.00 $ 0 $ 6.00 $ 0 Beginning Inventory Purchases 6,000 $ 7.00 $ 7.00 0 $ 7.00 0 January 10 January 18 Total 42,000 56.000 7,000 $ 8.00 $ 8.00 0 $ 8.00 0 20,000 $ 140,000 0 $ 0 0 $ 0 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 per Cost per Cost of Goods Available for Sale Cost of Goods # of units unit Available for Sale 7,000 $ 6.00 $ 42,000 # of units sold # of units in ending inventory Cost of Goods Sold Cost per unit unit Ending Inventory $ 6.00 $ 0 $ 6.00 $ 0 Beginning Inventory Purchases: January 10 January 18 Total 6,000 $ 7.00 42,000 $ 7.00 0 $ 7.00 0 7,000 $ 8.00 $ 8.00 0 $ 8.00 0 56,000 140,000 20,000 $ 0 $ 0 0 $ 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 per unit # of units sold Cost per Cost of # of units Goods Sold sold Cost of Goods Available for Sale $ 42,000 Cost of Goods Sold # of units Cost per sold Cost of Goods Sold # of units in ending inventory Cost per unit unit Ending Inventory unit 7,000 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 0 Beg. Inventory Purchases January 10 January 18 Total 7.00 42,000 7.00 7.00 0 7.00 7.00 6,000 7,000 20,000 8.00 8.00 8.00 0 8.00 8.00 56,000 140,000 $ 4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system. Cost of Goods Sold - Average Cost Ending Inventory - Average Cost Average Cost Cost of Goods Available for Sale Cost of Unit Goods # of units Cost Available for Sale 7,000 $ 6.00 $ 42,000 # of units sold Average Cost per Unit Cost of Goods Sold # of units in ending inventory Average Cost per unit Ending Inventory Beginning Inventory Purchases: January 10 January 18 Total 6,000 $ 7.00 7,000 $ 8.00 20,000 42,000 56,000 140,000 $ 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.) Inventory on hand Cost of Goods Sold Perpetual Average # of units Cost per unit Inventory Value # of units sold Avg.Cost per unit Cost of Goods Sold 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
