Required information Problem 8-5 (Algo) Various invettory costing methods [LO8-1, 8-4] [The following information applies to the questions displayed below.] A company began January with 8,000 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 Sales Unit's Date of Sale January 5 January 12 January 20 Total 6,000 8,000 14,000 * Includes purchase price and cost of freight. Units 4,000 2,000 5,000 11,000 Purchases Unit Cost* $9 Problem 8-5 (Algo) Part 1 10 Total Cost $ 54,000 80,000 $ 134,000 11,000 units were on hand at the end of the month.
Required information Problem 8-5 (Algo) Various invettory costing methods [LO8-1, 8-4] [The following information applies to the questions displayed below.] A company began January with 8,000 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 Sales Unit's Date of Sale January 5 January 12 January 20 Total 6,000 8,000 14,000 * Includes purchase price and cost of freight. Units 4,000 2,000 5,000 11,000 Purchases Unit Cost* $9 Problem 8-5 (Algo) Part 1 10 Total Cost $ 54,000 80,000 $ 134,000 11,000 units were on hand at the end of the month.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
Problem 8-5 (Algo) Various invettory costing methods [LO8-1,8-4)
[The following information applies to the questions displayed below.]
A company began January with 8,000 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
Date of Sale
January 5
January 12
January 20
Total
* Includes purchase price and cost of freight.
Sales
Unit's
FIFO
6,000
8,000
14,000
Beginning Inventory
Purchases:
January 10
January 18
Total
Problem 8-5 (Algo) Part 1
Units
11,000 units were on hand at the end of the month.
4,000
2,000
5,000
11,000
Required:
1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system.
Purchases
Unit Cost*
$9
10
Cost of Goods Available for Sale
Cost of
Goods
Available for
Sale
8,000 $8.00 $
64,000
Number Cost per
of units unit
6,000 $9.00
8,000 $10.00
22,000
Total Cost
$ 54,000
80,000
$ 134,000
$
54,000
80,000
198,000
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%2F3f776868-c27f-4d6e-82b8-cc408728fc94%2Fe39d9004-5573-4048-9fb0-e04654b6a12c%2Fzf8lw7r_processed.jpeg&w=3840&q=75)
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Required information
Problem 8-5 (Algo) Various invettory costing methods [LO8-1,8-4)
[The following information applies to the questions displayed below.]
A company began January with 8,000 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
Date of Sale
January 5
January 12
January 20
Total
* Includes purchase price and cost of freight.
Sales
Unit's
FIFO
6,000
8,000
14,000
Beginning Inventory
Purchases:
January 10
January 18
Total
Problem 8-5 (Algo) Part 1
Units
11,000 units were on hand at the end of the month.
4,000
2,000
5,000
11,000
Required:
1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system.
Purchases
Unit Cost*
$9
10
Cost of Goods Available for Sale
Cost of
Goods
Available for
Sale
8,000 $8.00 $
64,000
Number Cost per
of units unit
6,000 $9.00
8,000 $10.00
22,000
Total Cost
$ 54,000
80,000
$ 134,000
$
54,000
80,000
198,000
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
Expert Solution
Step 1 Introduction
The inventory can be valued using various methods as LIFO, FIFO and weighted average method.
FIFO stands for First in First out. The inventory purchased first is to be sold first under this method.
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