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
Related questions
Question
3.
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:2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system.
Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO
Ending Inventory - Periodic LIFO
Cost of
Goods
Available for
Sale
# of units
in ending
inventory
LIFO
# of units Cost per
unit
# of units
sold
Cost per
unit
Cost of
Cost per
unit
Ending
Inventory
Goods Sold
Beginning Inventory
4,000 $ 8.00 $
32,000
8.00 $
8.00 $
Purchases:
3,000 $ 9.00
4,000 $ 10.00
January 10
27,000
$
9.00
$
9.00
January 18
40,000
$
10.00
$
10.00
Total
11,000
99,000
$
$
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