A company began January with 6,000 units of its principal product. The cost of each unit is $5. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Units 5,000 6,000 11,000 Date of Sale January 5 January 121 January 20 Total Includes purchase price and cost of freight. Sales Purchases Unit Cost $6 7 Units 3,000 2,000 4,000 9,000 8,000 units were on hand at the end of the month. Total Cost $ 30,000 42,000 $ 72,000
A company began January with 6,000 units of its principal product. The cost of each unit is $5. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Units 5,000 6,000 11,000 Date of Sale January 5 January 121 January 20 Total Includes purchase price and cost of freight. Sales Purchases Unit Cost $6 7 Units 3,000 2,000 4,000 9,000 8,000 units were on hand at the end of the month. Total Cost $ 30,000 42,000 $ 72,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.
Perpetual FIFO
Beginning Inventory
Purchases
January 10
January 18
Total
Cost of Goods Available for Sale
Cost of
Goods
Available for
Sale
Number Unit
of units
Cost
6,000 $5.00 $
5,000
6,000
17,000
6.00
7.00
Show Transcribed Text
Number of
units in
ending
inventory
$
0
30,000
30,000
42.000
102,000
Cost of Goods Sold-January 5 Cost of Goods Sold-January 12
Number
of units
sold
Number
of units
sold
0
Cost per
unit
$
Ű
Cost of
Goods Sold
5.00 $
6.00
7.00
$
Inventory Balance
Cost per
unit
0
0
0
0
6.00
7.00
$ 5.00 $
0
$
Cost per
unit
$
Cost of
Goods Sold
5.00 $
6.00
7.00
S
O
Ending
Inventory
of
O
0
Cost of Goods Sold-January 20
Number
of units
sold
0
Cost per
unit
0
0
0
$
0.
Cost of
Goods Sold
5.00 $
6.00
7.00
$
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 6,000 units of its principal product. The cost of each unit is $5. Inventory transactions for
the month of January are as follows:
Date of Purchase
January 10
January 18
Totals
Sales
Units
5,000
6,000
11,000
Date of Sale
January 5
January 12
January 201
Total
Includes purchase price and cost of freight.
Purchases
Units
3,000
2,000
4,000
9,000
Unit Cost
$6
7
8,000 units were on hand at the end of the month.
Total Cost
$ 30,000
42,000
$ 72,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F475b0c8f-9dd7-487b-9264-3e04ebb75dff%2F140d61b6-2a32-4952-b5b6-287f3e86ac04%2Fprd6kg_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 6,000 units of its principal product. The cost of each unit is $5. Inventory transactions for
the month of January are as follows:
Date of Purchase
January 10
January 18
Totals
Sales
Units
5,000
6,000
11,000
Date of Sale
January 5
January 12
January 201
Total
Includes purchase price and cost of freight.
Purchases
Units
3,000
2,000
4,000
9,000
Unit Cost
$6
7
8,000 units were on hand at the end of the month.
Total Cost
$ 30,000
42,000
$ 72,000
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