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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text: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
Date of Sale
January 5
January 12
January 20
Total
Sales
Perpetual Average
* Includes purchase price and cost of freight.
Units
Beginning Inventory
Sale - January 5
Subtotal Average Cost
5,000
6,000
11,000
Purchase - January 10
Subtotal Average Cost
Sale - January 12
Subtotal Average Cost
Purchase - January 18
Subtotal Average Cost
Sale - January 20
Total
Purchases
Units
3,000
2,000
4,000
9,000
Unit Cost*
8,000 units were on hand at the end of the month.
$9
10
Problem 8-5 (Static) Part 5
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.
Total Cost
$ 45,000
60,000
$ 105,000
Inventory on hand
Number Cost per Inventory
of units unit
Value
Number
of units
sold
Cost of Goods Sold
Average
Cost per
unit
Cost of
Goods Sold
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