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 Purchases Units Unit Cost* Total Cost January 10 5,000 $ 9 $ 45,000 January 18 6,000 10 60,000 Totals 11,000 $ 105,000 * 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. 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system
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 Purchases Units Unit Cost* Total Cost January 10 5,000 $ 9 $ 45,000 January 18 6,000 10 60,000 Totals 11,000 $ 105,000 * 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. 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 Purchases
Units Unit Cost* Total Cost
January 10 5,000 $ 9 $ 45,000
January 18 6,000 10 60,000
Totals 11,000 $ 105,000
* 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.
2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system.
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