Ferris Company began 2018 with 5,000 units of its principal product. The cost of
ID: 2406408 • Letter: F
Question
Ferris Company began 2018 with 5,000 units of its principal product. The cost of each unit is $9. Merchandise transactions for the month of January 2018 are as follows: Purchases Date of Purchase Units Unit Cost* Total Cost Jan. 10 6,000 $ 10 $ 60,000 Jan. 18 5,000 11 55,000 Totals 11,000 115,000 *Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 3,000 Jan. 12 3,000 Jan. 20 4,000 Total 10,000 6,000 units were on hand at the end of the month. Required: Calculate January's ending inventory and cost of goods sold for the month using each of the following alternatives: 1. FIFO, periodic system. 2. LIFO, periodic system. 3. LIFO, perpetual system. 4. Average cost, periodic system. 5. Average cost, perpetual system.
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Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system.
Explanation / Answer
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Balance 5000 9 45000 5000 9 45000 Purchasse 10-Jan 6000 10 60000 5000 10 50000 1000 10 10000 18-Jan 5000 11 55000 5000 11 55000 TOTAL 16000 160000 10000 95000 6000 65000 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Balance 5000 9 45000 5000 9 45000 Purchasse 10-Jan 6000 10 60000 5000 10 50000 1000 10 10000 18-Jan 5000 11 55000 5000 11 55000 TOTAL 16000 160000 10000 105000 6000 55000 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 5000 9 45000 5-Jan 3000 9 27000 2000 9 18000 10-Jan 6000 10 60000 2000 9 18000 6000 10 60000 12-Jan 3000 10 30000 2000 9 18000 3000 10 30000 18-Jan 5000 11 55000 2000 9 18000 3000 10 30000 5000 11 55000 20-Jan 4000 11 44000 2000 9 18000 3000 10 30000 1000 11 11000 TOTAL 11000 115000 10000 101000 6000 59000 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Balance 5000 9 45000 Purchasse 10-Jan 6000 10 60000 18-Jan 5000 11 55000 TOTAL 16000 10 160000 10000 10 100000 6000 10 60000 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 5000 9 45000 5-Jan 3000 9 27000 2000 9 18000 10-Jan 6000 10 60000 2000 9 18000 6000 10 60000 Average 8000 9.75 78000 12-Jan 3000 9.75 29250 5000 9.75 48750 18-Jan 5000 11 55000 5000 9.75 48750 5000 11 55000 Average 10000 10.375 103750 20-Jan 4000 10.375 41500 6000 10.375 62250 TOTAL 11000 115000 10000 97750 6000 62250
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