Question
The following information applies to the questions displayed below.] A company began January with 6,000 units of its principal product. The cost of each unit
The following information applies to the questions displayed below.]
A company began January with 6,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows:
Date of Purchase | Purchases | ||
---|---|---|---|
Units | Unit Cost*Footnote asterisk | Total Cost | |
January 10 | 5,000 | $ 8 | $ 40,000 |
January 18 | 6,000 | 9 | 54,000 |
Totals | 11,000 | $ 94,000 |
*Footnote asterisk Includes purchase price and cost of freight.
Sales | |
---|---|
Date of Sale | Units |
January 5 | 3,000 |
January 12 | 2,000 |
January 20 | 4,000 |
Total | 9,000 |
8,000 units were on hand at the end of the month.
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.
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