Required information Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4] [The following information applies to the questions displayed below.] A company began January with 5,000 units of its principal product. The cost of each unit is $8. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Total Date of Sale January 5 January 12 January 20 Total * Includes purchase price and cost of freight. Sales Units 3,000 5,000 8,000 Problem 8-5 (Algo) Part 1 FIFO Beginning Inventory Purchases: January 10 January 18 Units 2,000 1,000 3,000 6,000 7,000 units were on hand at the end of the month. Required: 1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system. Purchases Unit Cost* $9 10 Number Cost per of units unit Cost of Goods Available for Sale Cost of Goods Available for Sale 5,000 $8.00 $ 40,000 3,000 $9.00 5,000 $10.00 13,000 $ Total Cost $ 27,000 50,000 $ 77,000 27,000 50,000 117,000 Cost of Goods Sold - Periodic FIFO Number of units sold 0 Cost per unit $ $ $ Cost of Goods Sold 8.00 $ 9.00 10.00 $ 0 0 0 0 Ending Inventory - Periodic FIFO Number of units in ending inventory Cost per unit Ending Inventory $ 8.00 $ $ 9.00 $ 10.00 $ 0 0 0 0
Required information Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4] [The following information applies to the questions displayed below.] A company began January with 5,000 units of its principal product. The cost of each unit is $8. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Total Date of Sale January 5 January 12 January 20 Total * Includes purchase price and cost of freight. Sales Units 3,000 5,000 8,000 Problem 8-5 (Algo) Part 1 FIFO Beginning Inventory Purchases: January 10 January 18 Units 2,000 1,000 3,000 6,000 7,000 units were on hand at the end of the month. Required: 1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system. Purchases Unit Cost* $9 10 Number Cost per of units unit Cost of Goods Available for Sale Cost of Goods Available for Sale 5,000 $8.00 $ 40,000 3,000 $9.00 5,000 $10.00 13,000 $ Total Cost $ 27,000 50,000 $ 77,000 27,000 50,000 117,000 Cost of Goods Sold - Periodic FIFO Number of units sold 0 Cost per unit $ $ $ Cost of Goods Sold 8.00 $ 9.00 10.00 $ 0 0 0 0 Ending Inventory - Periodic FIFO Number of units in ending inventory Cost per unit Ending Inventory $ 8.00 $ $ 9.00 $ 10.00 $ 0 0 0 0
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.11E: Inventory Costing Methods VanderMeer Inc. reported the following information for the month of...
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Required information
Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4]
[The following information applies to the questions displayed below.]
A company began January with 5,000 units of its principal product. The cost of each unit is $8. Inventory transactions for
the month of January are as follows:
Date of Purchase
January 10
January 18
Totals
Total
Date of Sale
January 5
January 12
January 20
Total
* Includes purchase price and cost of freight.
Sales
Units
3,000
5,000
8,000
Problem 8-5 (Algo) Part 1
FIFO
Beginning Inventory
Purchases:
January 10
January 18
Units
2,000
1,000
3,000
6,000
7,000 units were on hand at the end of the month.
Required:
1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system.
Purchases
Unit Cost*
Number Cost per
of units unit
Cost of Goods Available for Sale
Cost of
Goods
Available for
Sale
40,000
5,000 $ 8.00
$9
10
3,000 $9.00
5,000 $10.00
13,000
$
$
Total Cost
$ 27,000
50,000
$ 77,000
27,000
50,000
117,000
Cost of Goods Sold - Periodic FIFO
Number of
units sold
0
Cost per
unit
$
$
$
Cost of
Goods Sold
8.00 $
9.00
10.00
$
0
0
0
0
Ending Inventory - Periodic FIFO
Number of
units in
ending
inventory
0
Cost per
unit
$
$
$
Ending
Inventory
8.00 $
9.00
10.00
$
0
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F43dc20aa-3f46-4b3b-a05b-7bab1ba305a6%2F2f6328a5-3fd3-41d2-ae43-ffe9b188337e%2Fiq7j3eb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5
Required information
Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4]
[The following information applies to the questions displayed below.]
A company began January with 5,000 units of its principal product. The cost of each unit is $8. Inventory transactions for
the month of January are as follows:
Date of Purchase
January 10
January 18
Totals
Total
Date of Sale
January 5
January 12
January 20
Total
* Includes purchase price and cost of freight.
Sales
Units
3,000
5,000
8,000
Problem 8-5 (Algo) Part 1
FIFO
Beginning Inventory
Purchases:
January 10
January 18
Units
2,000
1,000
3,000
6,000
7,000 units were on hand at the end of the month.
Required:
1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system.
Purchases
Unit Cost*
Number Cost per
of units unit
Cost of Goods Available for Sale
Cost of
Goods
Available for
Sale
40,000
5,000 $ 8.00
$9
10
3,000 $9.00
5,000 $10.00
13,000
$
$
Total Cost
$ 27,000
50,000
$ 77,000
27,000
50,000
117,000
Cost of Goods Sold - Periodic FIFO
Number of
units sold
0
Cost per
unit
$
$
$
Cost of
Goods Sold
8.00 $
9.00
10.00
$
0
0
0
0
Ending Inventory - Periodic FIFO
Number of
units in
ending
inventory
0
Cost per
unit
$
$
$
Ending
Inventory
8.00 $
9.00
10.00
$
0
0
0
0
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