Required information [The following information applies to the questions displayed below.] A company began January with 6,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows: * Total Date of Purchase January 10 January 18 Totals *Includes purchase price and cost of freight. Date of Sale January 5 January 12 January 20 Total Sales Average Cost Beginning Inventory Purchases: Units January 10 January 18 5,000 6,000 11,000 8,000 units were on hand at the end of the month. Units 3,000 2,000 4,000 9,000 1. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system. Purchases Unit Cost* $ 8 9 Cost of Goods Available for Sale Cost of Goods Available for Sale 6,000 $ 7.00 $ 42,000 Number Unit of units Cost 5,000 $8.00 6,000 $9.00 17,000 Total Cost $ 40,000 54,000 $ 94,000 40,000 54,000 $ 136,000 Cost of Goods Sold - Average Cost Average Cost per Unit Number of units sold Cost of Goods Sold GA 0 Ending Inventory - Average Cost Number of Average units in Cost per ending unit inventory Ending Inventory 0
Required information [The following information applies to the questions displayed below.] A company began January with 6,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows: * Total Date of Purchase January 10 January 18 Totals *Includes purchase price and cost of freight. Date of Sale January 5 January 12 January 20 Total Sales Average Cost Beginning Inventory Purchases: Units January 10 January 18 5,000 6,000 11,000 8,000 units were on hand at the end of the month. Units 3,000 2,000 4,000 9,000 1. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system. Purchases Unit Cost* $ 8 9 Cost of Goods Available for Sale Cost of Goods Available for Sale 6,000 $ 7.00 $ 42,000 Number Unit of units Cost 5,000 $8.00 6,000 $9.00 17,000 Total Cost $ 40,000 54,000 $ 94,000 40,000 54,000 $ 136,000 Cost of Goods Sold - Average Cost Average Cost per Unit Number of units sold Cost of Goods Sold GA 0 Ending Inventory - Average Cost Number of Average units in Cost per ending unit inventory Ending Inventory 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A company began January with 6,000 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 Purchases
Units Unit Cost*Footnote asterisk Total Cost
January 10 5,000 $ 8 $ 40,000
January 18 6,000 9 54,000
Totals 11,000 $ 94,000
*Footnote asterisk Includes purchase price and cost of freight.
Sales
Date of Sale Units
January 5 3,000
January 12 2,000
January 20 4,000
Total 9,000
8,000 units were on hand at the end of the month.
4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system.
![Required information
[The following information applies to the questions displayed below.]
A company began January with 6,000 units of its principal product. The cost of each unit is $7. Inventory transactions for
the month of January are as follows:
*
Total
Date of Purchase
January 10
January 18
Totals
*Includes purchase price and cost of freight.
Date of Sale
January 5
January 12
January 20
Total
Sales
Average Cost
Beginning Inventory
Purchases:
Units
January 10
January 18
5,000
6,000
11,000
8,000 units were on hand at the end of the month.
Units
3,000
2,000
4,000
9,000
1. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system.
Purchases
Unit Cost*
$ 8
9
Cost of Goods Available for Sale
Cost of
Goods
Available for
Sale
6,000 $ 7.00 $ 42,000
Number Unit
of units Cost
5,000 $8.00
6,000 $9.00
17,000
Total Cost
$ 40,000
54,000
$ 94,000
40,000
54,000
$ 136,000
Cost of Goods Sold - Average Cost
Average
Cost per
Unit
Number of
units sold
Cost of
Goods Sold
GA
0
Ending Inventory - Average Cost
Number of
Average
units in
Cost per
ending
unit
inventory
Ending
Inventory
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c4eada4-bebe-42ca-8646-589bafc0135e%2F227c8020-b1ae-4277-8d87-7ff9de5d5cfd%2F8g0xv3l_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
A company began January with 6,000 units of its principal product. The cost of each unit is $7. Inventory transactions for
the month of January are as follows:
*
Total
Date of Purchase
January 10
January 18
Totals
*Includes purchase price and cost of freight.
Date of Sale
January 5
January 12
January 20
Total
Sales
Average Cost
Beginning Inventory
Purchases:
Units
January 10
January 18
5,000
6,000
11,000
8,000 units were on hand at the end of the month.
Units
3,000
2,000
4,000
9,000
1. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system.
Purchases
Unit Cost*
$ 8
9
Cost of Goods Available for Sale
Cost of
Goods
Available for
Sale
6,000 $ 7.00 $ 42,000
Number Unit
of units Cost
5,000 $8.00
6,000 $9.00
17,000
Total Cost
$ 40,000
54,000
$ 94,000
40,000
54,000
$ 136,000
Cost of Goods Sold - Average Cost
Average
Cost per
Unit
Number of
units sold
Cost of
Goods Sold
GA
0
Ending Inventory - Average Cost
Number of
Average
units in
Cost per
ending
unit
inventory
Ending
Inventory
0
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