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 Date of Sale January 5 January 12 January 20 Total * Includes purchase price and cost of freight. Perpetual FIFO: Sales Beginning Inventory Purchases: Units 5,000 6,000 11,000 January 10 January 18 Units 3,000 2,000 4,000 9,000 8,000 units were on hand at the end of the month. Purchases Unit Cost* 3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system. $8 9 5,000 8.00 6,000 9.00 17,000 Total Cost $ 40,000 54,000 $ 94,000 Cost of Goods Available for Sale Cost of Goods Sold - January 5 Cost of Number Unit Goods of units Cost Available for Sale 6,000 $7.00 $ 42,000 40,000 54,000 $ 136,000 Number of units sold 0 Cost per unit $ Cost of Goods Sold 7.00 $ 8.00 9.00 $ 0 0 0 0 Cost of Goods Sold - January 12 Number of units sold 0 Cost per unit $ Cost of Goods Sold 7.00 $ 8.00 9.00 $ 0 0 0 0 Cost of Goods Sold - January 20 Number of units sold 0 Cost per unit Cost of Goods Sold $ 7.00 $ 8.00 9.00 S 0 0 0 0 Inventory Balance Number of units in ending inventory 0 Cost per unit $ Ending Inventory 7.00 $ 8.00 9.00 $ 0 0 0 0
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 Date of Sale January 5 January 12 January 20 Total * Includes purchase price and cost of freight. Perpetual FIFO: Sales Beginning Inventory Purchases: Units 5,000 6,000 11,000 January 10 January 18 Units 3,000 2,000 4,000 9,000 8,000 units were on hand at the end of the month. Purchases Unit Cost* 3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system. $8 9 5,000 8.00 6,000 9.00 17,000 Total Cost $ 40,000 54,000 $ 94,000 Cost of Goods Available for Sale Cost of Goods Sold - January 5 Cost of Number Unit Goods of units Cost Available for Sale 6,000 $7.00 $ 42,000 40,000 54,000 $ 136,000 Number of units sold 0 Cost per unit $ Cost of Goods Sold 7.00 $ 8.00 9.00 $ 0 0 0 0 Cost of Goods Sold - January 12 Number of units sold 0 Cost per unit $ Cost of Goods Sold 7.00 $ 8.00 9.00 $ 0 0 0 0 Cost of Goods Sold - January 20 Number of units sold 0 Cost per unit Cost of Goods Sold $ 7.00 $ 8.00 9.00 S 0 0 0 0 Inventory Balance Number of units in ending inventory 0 Cost per unit $ Ending Inventory 7.00 $ 8.00 9.00 $ 0 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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 | Purchases | ||
|---|---|---|---|
| Units | Unit Cost*Footnote asterisk | Total Cost | |
| January 10 | 5,000 | $ 8 | $ 40,000 |
| January 18 | 6,000 | 9 | 54,000 |
| Totals | 11,000 | $ 94,000 |
*Footnote asterisk Includes purchase price and cost of freight.
| Sales | |
| Date of Sale | Units |
|---|---|
| January 5 | 3,000 |
| January 12 | 2,000 |
| January 20 | 4,000 |
| Total | 9,000 |
8,000 units were on hand at the end of the month.
3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.
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
Perpetual FIFO:
Sales
Beginning Inventory
Purchases:
January 10
January 18
Units
5,000
6,000
11,000
8,000 units were on hand at the end of the month.
3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.
Units
6,000
3,000
2,000
4,000
9,000
5,000
6,000
17,000
Purchases
Unit Cost*
$8
9
Cost of Goods Available for Sale
Cost of
Number Unit
Goods
of units Cost Available for
Sale
$7.00 $ 42,000
8.00
9.00
$
Total Cost
$ 40,000
54,000
$ 94,000
40,000
54,000
136,000
Cost of Goods Sold - January 5
Number
of units
sold
0
Cost per
unit
$
7.00
8.00
9.00
Cost of
Goods Sold
0
0
0
0
Cost of Goods Sold - January 12
Number
of units
sold
0
Cost per
unit
$
Cost of
Goods Sold
7.00 $
8.00
9.00
$
0
0
0
0
Cost of Goods Sold - January 20
Number
of units
sold
0
Cost per
unit
$
7.00
8.00
9.00
Cost of
Goods Sold
0
0
0
O
Inventory Balance
Number of
units in
ending
inventory
0
Cost per
unit
$
7.00
8.00
9.00
Ending
Inventory
$
$
0
0
0
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