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. Required: 1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, 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. Required: 1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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.
Required:
1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system.
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