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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.

 

Required:

1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system.

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