Required information Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4] Skip to question [The following information applies to...

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Accounting

Required information
Problem 8-5 (Algo) Various inventory costing methods [LO8-1,8-4]
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[The following information applies to the questionsdisplayed below.]

Ferris Company began January with 7,000 units of its principalproduct. The cost of each unit is $6. Merchandise transactions forthe month of January are as follows:
Purchases
Date of Purchase Units Unit Cost* Total Cost
Jan. 10 6,000 $ 7 $ 42,000
Jan. 18 7,000 8 56,000
Totals 13,000 98,000

* 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 costof goods sold for the month using FIFO, periodic system.
2. Calculate January's ending inventory andcost of goods sold for the month using LIFO, periodic system.

4. Calculate January's ending inventory andcost of goods sold for the month using Average cost, periodicsystem.
5. Calculate January's ending inventory andcost of goods sold for the month using Average cost, perpetualsystem. (Round average cost per unit to 4 decimal places.Enter sales with a negative sign.)

Answer & Explanation Solved by verified expert

4.2 Ratings (756 Votes)

Ans 1Total units sold 8000Cost of goods available forsaleCost of goodssoldEndinginventoryFIFO ofUnitsCost perCost ofgoods ofunitsCost perCost of of UnitsinCost perEndingUnitAvailable See Answer

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	Purchases
Date of Purchase	Units	Unit Cost*		Total Cost
Jan. 10	6,000	$	7		$	42,000
Jan. 18	7,000		8			56,000
Totals	13,000					98,000

Sales
Date of Sale	Units
Jan. 5	3,000
Jan. 12	1,000
Jan. 20	4,000
Total	8,000