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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education