0 Required information Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4] [The following information applies to the questions displayed below] A company began January with 9,000 units of its principal product. The cost of each unit is $8. Inventory transactions for the month of January are as follows: Date of Purchase Units January 10 6,000 Purchases Unit Cost $ 9 Total Cost January 18 9,000 10 $ 54,000 90,000 Totals 15,000 $ 144,000 Includes purchase price and cost of freight. Sales Date of Sale Units January 5 5,000 January 12 3,000 January 20 Total 6,000 14,000 10,000 units were on hand at the end of the month. Problem 8-5 (Algo) Part 5 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. Inventory on hand Cost of Goods Sold Perpetual Average Number of units Cost per unit Inventory Value Number of units sold Average Cost per unit Cost of Goods Sold Beginning Inventory 9,000 10.0000 $ 90,000 Sale-January 5 5,000 0 Subtotal Average Cost 14,000 90,000 Purchase - January 10 6,000 0 Subtotal Average Cost 20,000 90,000 Sale-January 12 3,000 0 Subtotal Average Cost 23,000 90,000 Purchase- January 18 9,000 0 Subtotal Average Cost 32,000 90,000 Sale-January 20 6,000 0 Total 38,000 $ 90,000 0 $ 0
0 Required information Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4] [The following information applies to the questions displayed below] A company began January with 9,000 units of its principal product. The cost of each unit is $8. Inventory transactions for the month of January are as follows: Date of Purchase Units January 10 6,000 Purchases Unit Cost $ 9 Total Cost January 18 9,000 10 $ 54,000 90,000 Totals 15,000 $ 144,000 Includes purchase price and cost of freight. Sales Date of Sale Units January 5 5,000 January 12 3,000 January 20 Total 6,000 14,000 10,000 units were on hand at the end of the month. Problem 8-5 (Algo) Part 5 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. Inventory on hand Cost of Goods Sold Perpetual Average Number of units Cost per unit Inventory Value Number of units sold Average Cost per unit Cost of Goods Sold Beginning Inventory 9,000 10.0000 $ 90,000 Sale-January 5 5,000 0 Subtotal Average Cost 14,000 90,000 Purchase - January 10 6,000 0 Subtotal Average Cost 20,000 90,000 Sale-January 12 3,000 0 Subtotal Average Cost 23,000 90,000 Purchase- January 18 9,000 0 Subtotal Average Cost 32,000 90,000 Sale-January 20 6,000 0 Total 38,000 $ 90,000 0 $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4]
[The following information applies to the questions displayed below]
A company began January with 9,000 units of its principal product. The cost of each unit is $8. Inventory transactions for
the month of January are as follows:
Date of Purchase
Units
January 10
6,000
Purchases
Unit Cost
$ 9
Total Cost
January 18
9,000
10
$ 54,000
90,000
Totals
15,000
$ 144,000
Includes purchase price and cost of freight.
Sales
Date of Sale
Units
January 5
5,000
January 12
3,000
January 20
Total
6,000
14,000
10,000 units were on hand at the end of the month.
Problem 8-5 (Algo) Part 5
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.
Inventory on hand
Cost of Goods Sold
Perpetual Average
Number
of units
Cost per
unit
Inventory
Value
Number
of units
sold
Average
Cost per
unit
Cost of
Goods Sold
Beginning Inventory
9,000
10.0000 $
90,000
Sale-January 5
5,000
0
Subtotal Average Cost
14,000
90,000
Purchase - January 10
6,000
0
Subtotal Average Cost
20,000
90,000
Sale-January 12
3,000
0
Subtotal Average Cost
23,000
90,000
Purchase- January 18
9,000
0
Subtotal Average Cost
32,000
90,000
Sale-January 20
6,000
0
Total
38,000
$ 90,000
0
$
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Required information
Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4]
[The following information applies to the questions displayed below]
A company began January with 9,000 units of its principal product. The cost of each unit is $8. Inventory transactions for
the month of January are as follows:
Date of Purchase
Units
January 10
6,000
Purchases
Unit Cost
$ 9
Total Cost
January 18
9,000
10
$ 54,000
90,000
Totals
15,000
$ 144,000
Includes purchase price and cost of freight.
Sales
Date of Sale
Units
January 5
5,000
January 12
3,000
January 20
Total
6,000
14,000
10,000 units were on hand at the end of the month.
Problem 8-5 (Algo) Part 5
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.
Inventory on hand
Cost of Goods Sold
Perpetual Average
Number
of units
Cost per
unit
Inventory
Value
Number
of units
sold
Average
Cost per
unit
Cost of
Goods Sold
Beginning Inventory
9,000
10.0000 $
90,000
Sale-January 5
5,000
0
Subtotal Average Cost
14,000
90,000
Purchase - January 10
6,000
0
Subtotal Average Cost
20,000
90,000
Sale-January 12
3,000
0
Subtotal Average Cost
23,000
90,000
Purchase- January 18
9,000
0
Subtotal Average Cost
32,000
90,000
Sale-January 20
6,000
0
Total
38,000
$ 90,000
0
$
0
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