Required information Skip to question [The following information applies to the questions displayed below.] Ferris Company began January with 4,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows: Purchases Date of Purchase Units Unit Cost* Total Cost Jan. 10 3,000 $ 9 $ 27,000 Jan. 18 4,000 10 40,000 Totals 7,000 67,000 * Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 2,000 Jan. 12 1,000 Jan. 20 3,000 Total 6,000 5,000 units were on hand at the end of the month.
Required information Skip to question [The following information applies to the questions displayed below.] Ferris Company began January with 4,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows: Purchases Date of Purchase Units Unit Cost* Total Cost Jan. 10 3,000 $ 9 $ 27,000 Jan. 18 4,000 10 40,000 Totals 7,000 67,000 * Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 2,000 Jan. 12 1,000 Jan. 20 3,000 Total 6,000 5,000 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
Skip to question
[The following information applies to the questions displayed below.]
Ferris Company began January with 4,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows:
| Purchases | |||||||||
| Date of Purchase | Units | Unit Cost* | Total Cost | ||||||
| Jan. 10 | 3,000 | $ | 9 | $ | 27,000 | ||||
| Jan. 18 | 4,000 | 10 | 40,000 | ||||||
| Totals | 7,000 | 67,000 | |||||||
* Includes purchase price and cost of freight.
| Sales | ||
| Date of Sale | Units | |
| Jan. 5 | 2,000 | |
| Jan. 12 | 1,000 | |
| Jan. 20 | 3,000 | |
| Total | 6,000 | |
5,000 units were on hand at the end of the month.
Transcribed Image Text:3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.
Cost of Goods Available for Sale
Cost of Goods Sold - January 5
Cost of Goods Sold - January 12
Cost of Goods Sold - January 20
In
Cost of
Goods
Available for
Perpetual FIFO:
# of
units
# of units
# of
units
Cost per
unit
Cost of
Goods Sold
# of units Cost per
sold
Cost of
Goods Sold
# of units Cost per
sold
Cost of
Unit
Cost
in ending
inventory
unit
unit
Goods Sold
sold
Sale
Sale
Beg. Inventory
4,000 $ 8.00 $
32,000
$
8.00 $
ol
$
8.00
$
$
8.00 $
Purchases:
January 10
3,000
9.00
27,000
9.00
9.00
9.00
January 18
4,000
10.00
40,000
10.00
10.00
10.00
Total
11,000
$
99,000
$
$
$
Transcribed Image Text:Inventory Balance
# of units
in ending
inventory
Cost per
unit
Ending
Inventory
$
8.00 $
9.00
10.00
$
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