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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 7,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows: Date of Purchase Units Purchases Unit Cost* Total Cost January 10 6,000 $ 8 January 18 7,000 9 $ 48,000 63,000 Totals 13,000 $ 111,000 * Includes purchase price and cost of freight. Sales Date of Sale Units January 5 3,000 January 12 1,000 January 20 4,000 Total 8,000 12,000 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. Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Ending Inventory - Periodic FIFO Cost of FIFO Number Cost per of units unit Goods Available for Number of units sold Cost per unit Cost of Goods Sold Number of units in Cost per ending unit Ending Inventory Sale inventory Beginning Inventory 7,000 $7.00 $ 49,000 $ 7.00 $ 0 7,000 $ 7.00 $ 49,000 Purchases: January 10 January 18 6,000 $ 8.00 48,000 $ 8.00 7,000 $9.00 63,000 $ 9.00 Total 20,000 $ 160,000 0 0 3,000 $ 8.00 24,000 0 7,000 $ 9.00 63,000 $ SA 0 17,000 $ 136,000

! 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 7,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows: Date of Purchase Units Purchases Unit Cost* Total Cost January 10 6,000 $ 8 January 18 7,000 9 $ 48,000 63,000 Totals 13,000 $ 111,000 * Includes purchase price and cost of freight. Sales Date of Sale Units January 5 3,000 January 12 1,000 January 20 4,000 Total 8,000 12,000 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. Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Ending Inventory - Periodic FIFO Cost of FIFO Number Cost per of units unit Goods Available for Number of units sold Cost per unit Cost of Goods Sold Number of units in Cost per ending unit Ending Inventory Sale inventory Beginning Inventory 7,000 $7.00 $ 49,000 $ 7.00 $ 0 7,000 $ 7.00 $ 49,000 Purchases: January 10 January 18 6,000 $ 8.00 48,000 $ 8.00 7,000 $9.00 63,000 $ 9.00 Total 20,000 $ 160,000 0 0 3,000 $ 8.00 24,000 0 7,000 $ 9.00 63,000 $ SA 0 17,000 $ 136,000

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 6EB: Bleistine Company had the following transactions for the month. Calculate the gross margin for the...
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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 7,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows: Date of Purchase Units Purchases Unit Cost* Total Cost January 10 6,000 $ 8 January 18 7,000 9 $ 48,000 63,000 Totals 13,000 $ 111,000 * Includes purchase price and cost of freight. Sales Date of Sale Units January 5 3,000 January 12 1,000 January 20 4,000 Total 8,000 12,000 units were on hand at the end of the month.
Transcribed Image Text:! 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 7,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows: Date of Purchase Units Purchases Unit Cost* Total Cost January 10 6,000 $ 8 January 18 7,000 9 $ 48,000 63,000 Totals 13,000 $ 111,000 * Includes purchase price and cost of freight. Sales Date of Sale Units January 5 3,000 January 12 1,000 January 20 4,000 Total 8,000 12,000 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. Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Ending Inventory - Periodic FIFO Cost of FIFO Number Cost per of units unit Goods Available for Number of units sold Cost per unit Cost of Goods Sold Number of units in Cost per ending unit Ending Inventory Sale inventory Beginning Inventory 7,000 $7.00 $ 49,000 $ 7.00 $ 0 7,000 $ 7.00 $ 49,000 Purchases: January 10 January 18 6,000 $ 8.00 48,000 $ 8.00 7,000 $9.00 63,000 $ 9.00 Total 20,000 $ 160,000 0 0 3,000 $ 8.00 24,000 0 7,000 $ 9.00 63,000 $ SA 0 17,000 $ 136,000
Transcribed Image Text:Required: 1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system. Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Ending Inventory - Periodic FIFO Cost of FIFO Number Cost per of units unit Goods Available for Number of units sold Cost per unit Cost of Goods Sold Number of units in Cost per ending unit Ending Inventory Sale inventory Beginning Inventory 7,000 $7.00 $ 49,000 $ 7.00 $ 0 7,000 $ 7.00 $ 49,000 Purchases: January 10 January 18 6,000 $ 8.00 48,000 $ 8.00 7,000 $9.00 63,000 $ 9.00 Total 20,000 $ 160,000 0 0 3,000 $ 8.00 24,000 0 7,000 $ 9.00 63,000 $ SA 0 17,000 $ 136,000
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