A company began January with 8,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows: Date of Purchase Purchases Units Unit Cost*Footnote asterisk Total Cost January 10 6,000 $ 8 $ 48,000 January 18 8,000 9 72,000 Totals 14,000 $ 120,000 *Footnote asterisk Includes purchase price and cost of freight. Sales Date of Sale Units January 5 4,000 January 12 2,000 January 20 5,000 Total 11,000 11,000 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 8,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows: Date of Purchase Purchases Units Unit Cost*Footnote asterisk Total Cost January 10 6,000 $ 8 $ 48,000 January 18 8,000 9 72,000 Totals 14,000 $ 120,000 *Footnote asterisk Includes purchase price and cost of freight. Sales Date of Sale Units January 5 4,000 January 12 2,000 January 20 5,000 Total 11,000 11,000 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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A company began January with 8,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows:
| Date of Purchase | Purchases | ||
|---|---|---|---|
| Units | Unit Cost*Footnote asterisk | Total Cost | |
| January 10 | 6,000 | $ 8 | $ 48,000 |
| January 18 | 8,000 | 9 | 72,000 |
| Totals | 14,000 | $ 120,000 |
*Footnote asterisk Includes purchase price and cost of freight.
| Sales | |
| Date of Sale | Units |
|---|---|
| January 5 | 4,000 |
| January 12 | 2,000 |
| January 20 | 5,000 |
| Total | 11,000 |
11,000 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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