A company began January with 9,000 units of its principal product. The cost of each unit is $4. 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 $ 5 $ 30,000 January 18 9,000 6 54,000 Totals 15,000 $ 84,000 *Footnote asterisk Includes purchase price and cost of freight. Sales Date of Sale Units January 5 5,000 January 12 3,000 January 20 6,000 Total 14,000 10,000 units were on hand at the end of the month. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system.
A company began January with 9,000 units of its principal product. The cost of each unit is $4. 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 $ 5 $ 30,000 January 18 9,000 6 54,000 Totals 15,000 $ 84,000 *Footnote asterisk Includes purchase price and cost of freight. Sales Date of Sale Units January 5 5,000 January 12 3,000 January 20 6,000 Total 14,000 10,000 units were on hand at the end of the month. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 12RE: Carla Company uses the perpetual inventory system. The following information is available for...
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A company began January with 9,000 units of its principal product. The cost of each unit is $4. 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 | $ 5 | $ 30,000 |
January 18 | 9,000 | 6 | 54,000 |
Totals | 15,000 | $ 84,000 |
*Footnote asterisk Includes purchase price and cost of freight.
Sales | |
Date of Sale | Units |
---|---|
January 5 | 5,000 |
January 12 | 3,000 |
January 20 | 6,000 |
Total | 14,000 |
10,000 units were on hand at the end of the month.
Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system.
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