Required information[The following information applies to the questions displayed below.]A company began January with 8,000 units of its principal product. The cost of each unit is $7. Inventory transactions forthe month of January are as follows:Date of PurchaseJanuary 10January 18TotalsSalesUnitsDate of SaleJanuary 5January 12January 20Total6,0008,00014,000* Includes purchase price and cost of freight.UnitsPurchasesUnit Cost*4,0002,0005,00011,000$8911,000 units were on hand at the end of the month.Total Cost$ 48,00072,000$ 120,000 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.Perpetual AverageBeginning InventorySale - January 5Subtotal Average CostPurchase - January 10Subtotal Average CostSale - January 12Subtotal Average CostPurchase - January 18Subtotal Average CostSale - January 20TotalInventory on handNumber Cost perof unitsunit0000InventoryValue$GA$000000Numberof unitssoldCost of Goods SoldAverageCost perunit0Cost ofGoods Sold$0

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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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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