Required information [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 $7. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Sales Units Date of Sale January 5 January 12 January 20 Total 6,000 8,000 14,000 * Includes purchase price and cost of freight. Purchases Unit Cost* Units 4,000 2,000 5,000 11,000 $8 9 11,000 units were on hand at the end of the month. Total Cost $ 48,000 72,000 $ 120,000
Required information [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 $7. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Sales Units Date of Sale January 5 January 12 January 20 Total 6,000 8,000 14,000 * Includes purchase price and cost of freight. Purchases Unit Cost* Units 4,000 2,000 5,000 11,000 $8 9 11,000 units were on hand at the end of the month. Total Cost $ 48,000 72,000 $ 120,000
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
Problem 3AP
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Question
![Required information
[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 $7. Inventory transactions for
the month of January are as follows:
Date of Purchase
January 10
January 18
Totals
Sales
Units
6,000
8,000
14,000
Date of Sale
January 5
January 12
January 20
Total
Includes purchase price and cost of freight.
Purchases
Unit Cost*
Units
4,000
2,000
5,000
11,000
$8
9
11,000 units were on hand at the end of the month.
Total Cost
$ 48,000
72,000
$ 120,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54e8c682-be67-4ef0-bd1d-cf8b2e543b76%2F56f1164a-4088-4034-a44d-9b0ef8c36dd4%2Fd0mwwi_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 8,000 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
January 10
January 18
Totals
Sales
Units
6,000
8,000
14,000
Date of Sale
January 5
January 12
January 20
Total
Includes purchase price and cost of freight.
Purchases
Unit Cost*
Units
4,000
2,000
5,000
11,000
$8
9
11,000 units were on hand at the end of the month.
Total Cost
$ 48,000
72,000
$ 120,000
![4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system.
Average Cost
Beginning Inventory
Purchases:
January 10
January 18
Total
Cost of Goods Available for Sale
Cost of
Goods
Number Unit
of units Cost Available for
Sale
8,000 $7.00
6,000 $8.00
8,000 $9.00
22,000
$ 56,000
$
48,000
72,000
176,000
Cost of Goods Sold - Average Cost
Average
Cost per
Unit
Number of
units sold
Cost of
Goods Sold
$
0
Ending Inventory - Average Cost
Number of
Average
units in
ending
inventory
Cost per
unit
Ending
Inventory
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54e8c682-be67-4ef0-bd1d-cf8b2e543b76%2F56f1164a-4088-4034-a44d-9b0ef8c36dd4%2F8apyz5y_processed.png&w=3840&q=75)
Transcribed Image Text:4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system.
Average Cost
Beginning Inventory
Purchases:
January 10
January 18
Total
Cost of Goods Available for Sale
Cost of
Goods
Number Unit
of units Cost Available for
Sale
8,000 $7.00
6,000 $8.00
8,000 $9.00
22,000
$ 56,000
$
48,000
72,000
176,000
Cost of Goods Sold - Average Cost
Average
Cost per
Unit
Number of
units sold
Cost of
Goods Sold
$
0
Ending Inventory - Average Cost
Number of
Average
units in
ending
inventory
Cost per
unit
Ending
Inventory
$
0
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