A company began January with 6,000 units of its principal product. The cost of each unit is $8. Inventory transactions forthe month of January are as follows:Date of PurchaseJanuary 10January 18TotalsDate of SaleJanuary 5January 12January 20TotalSalesPerpetual Average* Includes purchase price and cost of freight.UnitsBeginning InventorySale - January 5Subtotal Average Cost5,0006,00011,000Purchase - January 10Subtotal Average CostSale - January 12Subtotal Average CostPurchase - January 18Subtotal Average CostSale - January 20TotalPurchasesUnits3,0002,0004,0009,000Unit Cost*8,000 units were on hand at the end of the month.$910Problem 8-5 (Static) Part 55. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system.Note: Round average cost per unit to 4 decimal places. Enter sales with a negative sign.Total Cost$ 45,00060,000$ 105,000Inventory on handNumber Cost per Inventoryof units unitValueNumberof unitssoldCost of Goods SoldAverageCost perunitCost ofGoods Sold

Using average method, the unit cost is calculated as total cost divided by the number of units.…

A company began January with 6,000 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 January 10 January 18 Totals Units Date of Sale January 5 January 12 January 20 Total 5,000 6,000 11,000 Purchases Unit Cost* * Includes purchase price and cost of freight. Sales Units 3,000 2,000 4,000 9,000 $9 10 Total Cost $ 45,000 60,000 $ 105,000 8,000 units were on hand at the end of the month.

A company began January with 6,000 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 January 10 January 18 Totals Units Date of Sale January 5 January 12 January 20 Total 5,000 6,000 11,000 Purchases Unit Cost* * Includes purchase price and cost of freight. Sales Units 3,000 2,000 4,000 9,000 $9 10 Total Cost $ 45,000 60,000 $ 105,000 8,000 units were on hand at the end of the month.

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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