A company began January with 7,000 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 Units January 10 4,000 Purchases Unit Cost* $ 9 Total Cost January 18 7,000 10 $ 36,000 70,000 Totals 11,000 $ 106,000 Includes purchase price and cost of freight. Sales Date of Sale Units January 5 3,000 January 12 1,000 January 20 4,000 Total 8,000 10,000 units were on hand at the end of the month. 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. Inventory on hand Perpetual Average Number of units Cost per unit Inventory Value Number of units sold Beginning Inventory Sale January 5 Cost of Goods Sold Average Cost per unit Cost of Goods Sold Subtotal Average Cost Durchaco January 10

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 7,000 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
Units
January 10
4,000
Purchases
Unit Cost*
$ 9
Total Cost
January 18
7,000
10
$ 36,000
70,000
Totals
11,000
$ 106,000
Includes purchase price and cost of freight.
Sales
Date of Sale
Units
January 5
3,000
January 12
1,000
January 20
4,000
Total
8,000
10,000 units were on hand at the end of the month.
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.
Inventory on hand
Perpetual Average
Number
of units
Cost per
unit
Inventory
Value
Number
of units
sold
Beginning Inventory
Sale January 5
Cost of Goods Sold
Average
Cost per
unit
Cost of
Goods Sold
Subtotal Average Cost
Durchaco January 10
Transcribed Image Text:A company began January with 7,000 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 Units January 10 4,000 Purchases Unit Cost* $ 9 Total Cost January 18 7,000 10 $ 36,000 70,000 Totals 11,000 $ 106,000 Includes purchase price and cost of freight. Sales Date of Sale Units January 5 3,000 January 12 1,000 January 20 4,000 Total 8,000 10,000 units were on hand at the end of the month. 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. Inventory on hand Perpetual Average Number of units Cost per unit Inventory Value Number of units sold Beginning Inventory Sale January 5 Cost of Goods Sold Average Cost per unit Cost of Goods Sold Subtotal Average Cost Durchaco January 10
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