Jan. 1 Beginning inventory Jan. 11: Sales Jan. 15:Purchase Jan. 17:Sales Jan. 21: Purchase Jan. 23: Sales Totals Cost of Goods Sold - Perpetual LIFO: 560: 840 890: Ending Inventory- Perpetual LIFO: 2,290; Calculate cost of goods sold for the January 11 sale of 450 units Calculate cost of goods sold for the January 17 sale of 670 units. $14 17 19 Units Sold 450 Total Cost of Goods Sold for January - 1,920 units Units in Ending Inventory Total Ending Inventory for January - 370 units $7,840 14,280 16.910 $39,030 @ units @ units @ units @ @ 450 670 800 1,920 Cost per unit $14 $14; Cost per unit $40 $40 $40: per unit = units@ units $18,000 26,800 32,000 $76,800 Cost of Goods Sold $6,300 Inventory Balance

Jan. 1 Beginning inventory Jan. 11: Sales Jan. 15:Purchase Jan. 17:Sales Jan. 21: Purchase Jan. 23: Sales Totals Cost of Goods Sold - Perpetual LIFO: 560: 840 890: Ending Inventory- Perpetual LIFO: 2,290; Calculate cost of goods sold for the January 11 sale of 450 units Calculate cost of goods sold for the January 17 sale of 670 units. $14 17 19 Units Sold 450 Total Cost of Goods Sold for January - 1,920 units Units in Ending Inventory Total Ending Inventory for January - 370 units $7,840 14,280 16.910 $39,030 @ units @ units @ units @ @ 450 670 800 1,920 Cost per unit $14 $14; Cost per unit $40 $40 $40: per unit = units@ units $18,000 26,800 32,000 $76,800 Cost of Goods Sold $6,300 Inventory Balance

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Description: REQUIRED: Determine the cost assigned to ending inventory and to cost of goods sold using LIFO. Eachyellow cell must include a formula using cell references, EVEN IF THE FORMULA RESULT IS ZERO.DateJan. 1 Beginning inventoryJan. 11: SalesJan. 15 Purc

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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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

Topic Video

Question

REQUIRED: Determine the cost assigned to ending inventory and to cost of goods sold using LIFO. Each
yellow cell must include a formula using cell references, EVEN IF THE FORMULA RESULT IS ZERO.
Date
Jan. 1 Beginning inventory
Jan. 11: Sales
Jan. 15 Purchase
Jan. 17: Sales
Jan, 21:Purchase
Jan. 23: Sales
Totals
Units
purchased
Cost of Goods Sold - Perpetual LIFO:
560
840
890:
Ending Inventory-Perpetual LIFO:
2,290
Calculate cost of goods sold for the January
11 sale of 450 units.
Calculate cost of goods sold for the January
17 sale of 670 units.
Cost per
unit
$14
17
19
Units Sold
450
Total Cost of Goods Sold for January - 1,920 units
Units in
Ending
Inventory
Total Cost Units Sold Selling Price Total Sales
of Purchase
per unit
Total Ending Inventory for January - 370 units
$7,840
14,280
16,910
$39,030
units @
units
units@
450
670
800
1,920
Cost per
unit
$14
$14
Cost per
unit
$40:
$40
$40
per unit=
units @
units
$18,000
26,800
32,000
$76,800
Cost of
Goods Sold
$6,300
Inventory
Balance

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Required information [The following information applies to the questions displayed below.] Ferris Company began January with 6,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows: Date of Purchase Jan. 10 Jan. 18 Totals Sales Units 5,000 6,000 11,000 Date of Sale Jan. 5 Jan. 12 Jan. 20 Total Purchases Includes purchase price and cost of freight. Units 3,000 2,000 4,000 9,000 Unit Cost* $9 10 8,000 units were on hand at the end of the month. Total Cost $ 45,000 60,000 $105,000 4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system.
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