Question: Ferris Company began 2016 with 9,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January 2016 are as follows: Purchases Purchase Unit Total Date Units Cost⭑ Cost Jan. 10 6,000 $9 $ 54,000 Jan. 18 9,000 $10 $90,000 Totals 15,000 $ 144,000 . Includes purchase price and cost of freight. Sales Date 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 each of the following alternatives: a.) FIFO b.) LIFO c.) Weighted Average method
Question: Ferris Company began 2016 with 9,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January 2016 are as follows: Purchases Purchase Unit Total Date Units Cost⭑ Cost Jan. 10 6,000 $9 $ 54,000 Jan. 18 9,000 $10 $90,000 Totals 15,000 $ 144,000 . Includes purchase price and cost of freight. Sales Date 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 each of the following alternatives: a.) FIFO b.) LIFO c.) Weighted Average method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question:
Ferris Company began 2016 with 9,000 units of its principal
product. The cost of each unit is $8.
Merchandise transactions for the month of January 2016 are
as follows:
Purchases
Purchase
Unit
Total
Date
Units
Cost⭑
Cost
Jan. 10
6,000
$9
$ 54,000
Jan. 18
9,000
$10
$90,000
Totals
15,000
$ 144,000
.
Includes purchase price and cost of freight.
Sales Date 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 each of the following alternatives:
a.) FIFO
b.) LIFO
c.) Weighted Average method
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