Homework Help is Here – Start Your Trial Now!
Business
Accounting
A company began January with 6,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Units Sales 5,000 6,000 11,000 Purchases Unit Cost* $8 9 * Includes purchase price and cost of freight. Total Cost $ 40,000 54,000 $ 94,000

A company began January with 6,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Units Sales 5,000 6,000 11,000 Purchases Unit Cost* $8 9 * Includes purchase price and cost of freight. Total Cost $ 40,000 54,000 $ 94,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please help me 

A company began January with 6,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Total * Includes purchase price and cost of freight. Date of Sale January 5 January 12 January 20 Total Sales Average Cost Beginning Inventory Purchases: Units 5,000 6,000 11,000 January 10 January 18 Units 8,000 units were on hand at the end of the month. 3,000 2,000 4,000 9,000 4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system. Purchases Unit Cost* $ 8 9 Cost of Goods Available for Sale Cost of Goods Number Unit of units Cost Available for Sale 6,000 $7.00 5,000 $ 8.00 6,000 $9.00 17,000 42,000 Total Cost $ 40,000 54,000 $ 94,000 40,000 54,000 $ 136,000 Cost of Goods Sold - Average Cost Average Cost per Unit Number of units sold Cost of Goods Sold Ending Inventory - Average Cost Number of Average units in Cost per ending unit inventory Ending Inventory
Transcribed Image Text:A company began January with 6,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Total * Includes purchase price and cost of freight. Date of Sale January 5 January 12 January 20 Total Sales Average Cost Beginning Inventory Purchases: Units 5,000 6,000 11,000 January 10 January 18 Units 8,000 units were on hand at the end of the month. 3,000 2,000 4,000 9,000 4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system. Purchases Unit Cost* $ 8 9 Cost of Goods Available for Sale Cost of Goods Number Unit of units Cost Available for Sale 6,000 $7.00 5,000 $ 8.00 6,000 $9.00 17,000 42,000 Total Cost $ 40,000 54,000 $ 94,000 40,000 54,000 $ 136,000 Cost of Goods Sold - Average Cost Average Cost per Unit Number of units sold Cost of Goods Sold Ending Inventory - Average Cost Number of Average units in Cost per ending unit inventory Ending Inventory
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS