[The following information applies to the questions displayed below.]Ferris Company began January with 4,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows: PurchasesDate of PurchaseUnits Unit Cost*Total CostJan. 103,000 $9 $27,000 Jan. 184,000 10 40,000 Totals7,000 67,000 * Includes purchase price and cost of freight. SalesDate of SaleUnits Jan. 52,000 Jan. 121,000 Jan. 203,000 Total6,000 5,000 units were on hand at the end of the month. 5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system. (Round average cost per unit to 4 decimal places. Enter sales with a negative sign.) Inventory Balance# of unitsin endinginventoryCost perEndingInventoryunit$8.00 $9.0010.00$

The inventory can be valued using various methods as LIFO, FIFO and weighted average method.

Answered: Ferris Company began January with 4,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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[The following information applies to the questions displayed below.]

Ferris Company began January with 4,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows:

	Purchases
Date of Purchase	Units	Unit Cost*	Total Cost
Jan. 10	3,000	$	9	$	27,000
Jan. 18	4,000		10		40,000
Totals	7,000				67,000

* Includes purchase price and cost of freight.

Sales
Date of Sale	Units
Jan. 5	2,000
Jan. 12	1,000
Jan. 20	3,000
Total	6,000

5,000 units were on hand at the end of the month.

5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system. (Round average cost per unit to 4 decimal places. Enter sales with a negative sign.)