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[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
[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 $7. Merchandise transactions for the month of January are as follows: Purchases Date of Purchase Units Unit Cost* Jan. 10 6,000 $ 8 Total Cost $ 48,000 Jan. 18 7,000 9 63,000 Totals 13,000 111,000 *Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 3,000 Jan. 12 1,000 Jan. 20 4,000 Total 8,000 12,000 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. Ending Inventory - Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO FIFO # 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 Cost per unit Ending Inventory inventory Beginning Inventory 7,000 $7.00 $ 49,000 $ 7.00 $ 7.00 Purchases: January 10 January 18 6,000 $8.00 48,000 $ 8.00 $ 8.00 7,000 $9.00 63,000 $ 9.00 $ 9.00 Total 20,000 $ 160,000
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