! 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 Number of unit units in Cost per Ending ending Inventory Inventory 7,000 $ 7.00 $ 49,000 FIFO Number Cost per of units unit Cost of Goods Available for Sale Number of Cost per units sold unit Cost of Goods Sold Beginning Inventory 7,000 $7.00 $ 49,000 $ 7.00 $ 0 Purchases: January 10 January 18 6,000 $ 8.00 48,000 S 8.00 0 3,000 $ 8.00 24,000 Total 7,000 $ 9.00 20,000 63,000 $ 160,000 S 9.00 0 7,000 $ 9.00 0 $ 0 17,000 63,000 $ 138,000 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. Ending Inventory - Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO LIFO Number Cost per of units unit Cost of Goods Available for Number of units sold Cost per unit Cost of Goods Sold Number of units in ending Cost per unit Ending Inventory Sale Inventory 7,000 $ 7.00 $ 49,000 $ 7.00 $ 0 $ 7.00 S 0 Beginning Inventory Purchases: January 10 January 18 6,000 $ 8.00 48,000 S 8.00 0 $ 8.00 0 7,000 $ 9.00 63,000 S 9.00 0 $ 9.00 0 Total 20,000 $ 160,000 0 $ 0 0 S 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 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 Number of unit units in Cost per Ending ending Inventory Inventory 7,000 $ 7.00 $ 49,000 FIFO Number Cost per of units unit Cost of Goods Available for Sale Number of Cost per units sold unit Cost of Goods Sold Beginning Inventory 7,000 $7.00 $ 49,000 $ 7.00 $ 0 Purchases: January 10 January 18 6,000 $ 8.00 48,000 S 8.00 0 3,000 $ 8.00 24,000 Total 7,000 $ 9.00 20,000 63,000 $ 160,000 S 9.00 0 7,000 $ 9.00 0 $ 0 17,000 63,000 $ 138,000 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. Ending Inventory - Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO LIFO Number Cost per of units unit Cost of Goods Available for Number of units sold Cost per unit Cost of Goods Sold Number of units in ending Cost per unit Ending Inventory Sale Inventory 7,000 $ 7.00 $ 49,000 $ 7.00 $ 0 $ 7.00 S 0 Beginning Inventory Purchases: January 10 January 18 6,000 $ 8.00 48,000 S 8.00 0 $ 8.00 0 7,000 $ 9.00 63,000 S 9.00 0 $ 9.00 0 Total 20,000 $ 160,000 0 $ 0 0 S 0
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 12E: Alternative Inventory Methods Park Companys perpetual inventory records indicate the following...
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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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa22b9814-26af-403b-b5f9-e38794a4a68e%2F6e8768e2-119f-4e06-9c84-db33b0f7c653%2Fz28usa_processed.png&w=3840&q=75)
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.
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
Number of
unit
units in Cost per Ending
ending
Inventory
Inventory
7,000 $ 7.00 $ 49,000
FIFO
Number Cost per
of units
unit
Cost of
Goods
Available for
Sale
Number of Cost per
units sold unit
Cost of
Goods Sold
Beginning Inventory
7,000 $7.00 $
49,000
$
7.00 $
0
Purchases:
January 10
January 18
6,000 $ 8.00
48,000
S
8.00
0
3,000 $ 8.00
24,000
Total
7,000 $ 9.00
20,000
63,000
$ 160,000
S
9.00
0
7,000 $ 9.00
0
$
0
17,000
63,000
$ 138,000
2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system.
Ending Inventory - Periodic LIFO
Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO
LIFO
Number Cost per
of units
unit
Cost of
Goods
Available for
Number of
units sold
Cost per
unit
Cost of
Goods Sold
Number of
units in
ending
Cost per
unit
Ending
Inventory
Sale
Inventory
7,000 $ 7.00 $
49,000
$
7.00
$
0
$ 7.00 S
0
Beginning Inventory
Purchases:
January 10
January 18
6,000
$ 8.00
48,000
S
8.00
0
$
8.00
0
7,000 $ 9.00
63,000
S
9.00
0
$ 9.00
0
Total
20,000
$
160,000
0
$
0
0
S
0
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