Ferris Company began January with 9,000 units of its principal product. The cost of each unit is $5. Merchandise transactions for the month of January are as follows: Purchases Date of Purchase Units Unit Cost* Total Cost Jan. 10 6,000 $ 6 $36,000 Jan. 18 9,000 7 63,000 Totals 15,000 99,000 *Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 5,000 Jan. 12 3,000 Jan. 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 Average cost, periodic system. Cost of Goods Available for Sale Cost of Goods Sold – Average Cost Ending Inventory – Average Cost Average Cost # of units Unit Cost of # of units Average Cost of # of units Average Ending Cost Goods sold Cost per Goods Sold in ending Cost per Inventory Available for Unit inventory unit Sale Beginning inventory 9,000 $5.00 $45,000 Purchases: January 10 6,000 6.00 36,000 January 18 9,000 7.00 63,000 Total 24,000 $144,000
Ferris Company began January with 9,000 units of its principal product. The cost of each unit is $5. Merchandise transactions for the month of January are as follows:
Purchases
Date of Purchase Units Unit Cost* Total Cost
Jan. 10 6,000 $ 6 $36,000
Jan. 18 9,000 7 63,000
Totals 15,000 99,000
*Includes purchase price and cost of freight.
Sales
Date of Sale Units
Jan. 5 5,000
Jan. 12 3,000
Jan. 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 Average cost, periodic system.
Cost of Goods Available for Sale Cost of Goods Sold – Average Cost Ending Inventory – Average Cost
Average Cost # of units Unit Cost of # of units Average Cost of # of units Average Ending
Cost Goods sold Cost per Goods Sold in ending Cost per Inventory
Available for Unit inventory unit
Sale
Beginning inventory 9,000 $5.00 $45,000
Purchases:
January 10 6,000 6.00 36,000
January 18 9,000 7.00 63,000
Total 24,000 $144,000 _______ ___ ________ ________ _______
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