A company began January with 9,000 units of its principal product. The cost of each unit is $5. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Date of Sale January 5 January 12 January 20 Total * Includes purchase price and cost of freight. Sales erpetual Average eginning Inventory ale - January 5 6,000 9,000 15,000 ubtotal Average Cost urchase - January 10 ubtotal Average Cost ale - January 12 ubtotal Average Cost urchase - January 18 ubtotal Average Cost ale - January 20 otal Units 10,000 units were on hand at the end of the month. 5,000 3,000 6,000 14,000 Units Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system. ote: Round average cost per unit to 4 decimal places. Enter sales with a negative sign. 9,000 Inventory on hand Number Cost per Inventory of units unit Value 9,000 9,000 Purchases Unit Cost* $6 7 9,000 9,000 9,000 5.0000 $ 5.0000 45,000 0 45,000 0 Total Cost $ 36,000 63,000 $ 99,000 45,000 0 45,000 0 45,000 0 S 45,000 Number of units sold Cost of Goods Sold Average Cost per unit 0 Cost of Goods Sold $

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system.

A company began January with 9,000 units of its principal product. The cost of each unit is $5. Inventory transactions for
the month of January are as follows:
Date of Purchase
January 10
January 18
Totals
* Includes purchase price and cost of freight.
Date of Sale
January 5
January 12
January 20
Total
Sales
Perpetual Average
-
Beginning Inventory
Sale - January 5
Subtotal Average Cost
Purchase January 10
Subtotal Average Cost
Sale January 12
10,000 units were on hand at the end of the month.
Subtotal Average Cost
Purchase - January 18
Subtotal Average Cost
Sale - January 20
Total
Units
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.
6,000
9,000
15,000
5,000
3,000
6,000
14,000
Units
9,000
9,000
Inventory on hand
Number Cost per Inventory
of units unit
Value
9,000
Purchases
Unit Cost*
$6
7
9,000
9,000
9,000
5.0000 $
5.0000
$
45,000
0
45,000
0
45,000
Total Cost
$ 36,000
63,000
$ 99,000
0
45,000
0
45,000
0
45,000
Number
of units
sold
Cost of Goods Sold
Average
Cost per
unit
0
Cost of
Goods Sold
$
0
Transcribed Image Text:A company began January with 9,000 units of its principal product. The cost of each unit is $5. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals * Includes purchase price and cost of freight. Date of Sale January 5 January 12 January 20 Total Sales Perpetual Average - Beginning Inventory Sale - January 5 Subtotal Average Cost Purchase January 10 Subtotal Average Cost Sale January 12 10,000 units were on hand at the end of the month. Subtotal Average Cost Purchase - January 18 Subtotal Average Cost Sale - January 20 Total Units 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. 6,000 9,000 15,000 5,000 3,000 6,000 14,000 Units 9,000 9,000 Inventory on hand Number Cost per Inventory of units unit Value 9,000 Purchases Unit Cost* $6 7 9,000 9,000 9,000 5.0000 $ 5.0000 $ 45,000 0 45,000 0 45,000 Total Cost $ 36,000 63,000 $ 99,000 0 45,000 0 45,000 0 45,000 Number of units sold Cost of Goods Sold Average Cost per unit 0 Cost of Goods Sold $ 0
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