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 Sales Units 6,000 9,000 15,000 *Includes purchase price and cost of freight. Date of Sale January 5 January 12 January 20 Total Units Purchases Unit Cost* $6 7 5,000 3,000 6,000 14,000 10,000 units were on hand at the end of the month. Total Cost $ 36,000 63,000 $ 99,000 Calculate January's ending inventory and cost of goods sold for the month using FIFO, 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 Sales Units 6,000 9,000 15,000 *Includes purchase price and cost of freight. Date of Sale January 5 January 12 January 20 Total Units Purchases Unit Cost* $6 7 5,000 3,000 6,000 14,000 10,000 units were on hand at the end of the month. Total Cost $ 36,000 63,000 $ 99,000 Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.11E: Inventory Costing Methods VanderMeer Inc. reported the following information for the month of...
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3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.
![Required Information
[The following information applies to the questions displayed below.]
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
Total
* Includes purchase price and cost of freight.
Date of Sale
January 5
January 12
January 20
Total
Perpetual FIFO:
Sales
Beginning Inventory
Purchases:
January 10
January 18
Units
6,000
9,000
15,000
10,000 units were on hand at the end of the month.
Units
3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.
5,000
3,000
6,000
14,000
6,000
9,000
24,000
9,000 $5.00
Purchases
Unit Cost*
$ 6
7
Cost of Goods Available for Sale Cost of Goods Sold - January 5
Cost of
Number Unit
Goods
of units Cost Available for
Sale
6.00
7.00
$
$
Total Cost
$36,000
63,000
$ 99,000
45,000
36,000
63,000
144,000
Number
of units
sold
Cost per
unit
S
5.00
6.00
7.00
Cost of
Goods Sold
Cost of Goods Sold - January 12
Number
of units
sold
Cost per
unit
$
5.00
6.00
7.00
Cost of
Goods Sold
0
0
Cost of Goods Sold - January 20
Number
of units
sold
Cost per
unit
$
5.00
6.00
7.00
Cost of
Goods Sold
0
Inventory Balance
Number of
units in
ending
inventory
Cost per
unit
$
5.00
6.00
7.00
Ending
Inventory](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F969dc51c-cfbc-4a88-8223-4a4d6f7856c4%2Ffaa644c2-0944-4c3c-baba-f7b6cff92b4a%2Fgzree1s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.]
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
Total
* Includes purchase price and cost of freight.
Date of Sale
January 5
January 12
January 20
Total
Perpetual FIFO:
Sales
Beginning Inventory
Purchases:
January 10
January 18
Units
6,000
9,000
15,000
10,000 units were on hand at the end of the month.
Units
3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.
5,000
3,000
6,000
14,000
6,000
9,000
24,000
9,000 $5.00
Purchases
Unit Cost*
$ 6
7
Cost of Goods Available for Sale Cost of Goods Sold - January 5
Cost of
Number Unit
Goods
of units Cost Available for
Sale
6.00
7.00
$
$
Total Cost
$36,000
63,000
$ 99,000
45,000
36,000
63,000
144,000
Number
of units
sold
Cost per
unit
S
5.00
6.00
7.00
Cost of
Goods Sold
Cost of Goods Sold - January 12
Number
of units
sold
Cost per
unit
$
5.00
6.00
7.00
Cost of
Goods Sold
0
0
Cost of Goods Sold - January 20
Number
of units
sold
Cost per
unit
$
5.00
6.00
7.00
Cost of
Goods Sold
0
Inventory Balance
Number of
units in
ending
inventory
Cost per
unit
$
5.00
6.00
7.00
Ending
Inventory
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