Required information [The following information applies to the questions displayed below.] A company began January with 4,000 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 Units January 10 3,000 Purchases Unit Cost* $ 9 Total Cost January 18 4,000 10 $ 27,000 40,000 Totals 7,000 $ 67,000 *Includes purchase price and cost of freight. Sales Date of Sale Units January 5 2,000 January 12 1,000 January 20 3,000 Total 6,000 5,000 units were on hand at the end of the month. Required: 1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system. Ending Inventory - Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO FIFO Number Cost per of units unit Cost of Goods Available for Sale Number of Number of Cost per units sold unit Cost of Goods Sold units in ending Cost per Ending unit Inventory inventory Beginning Inventory 4,000 $ 8.00 $ 32,000 4,000 $ 8.00 $ 32,000 $ 8.00 $ 0 Purchases: January 10 January 18 3,000 $ 9.00 27,000 2,000 $ 9.00 18,000 $ 9.00 0 4,000 $ 10.00 40,000 $ 10.00 0 $ 10.00 0 Total 11,000 $ 99,000 6,000 $ 50,000 0 $ 0

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required information
[The following information applies to the questions displayed below.]
A company began January with 4,000 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
Units
January 10
3,000
Purchases
Unit Cost*
$ 9
Total Cost
January 18
4,000
10
$ 27,000
40,000
Totals
7,000
$ 67,000
* Includes purchase price and cost of freight.
Sales
Date of Sale
Units
January 5
2,000
January 12
1,000
January 201
3,000
Total
6,000
5,000 units were on hand at the end of the month.
Required:
1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system.
Ending Inventory - Periodic FIFO
Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO
FIFO
Number Cost per
of units unit
Cost of
Goods
Available for
Sale
Number of Cost per
units sold unit
Cost of
Goods Sold
Number of
units in
ending
Cost per Ending
unit
Inventory
inventory
Beginning Inventory
4,000 $ 8.00
$
32,000
4,000 $
8.00
$
32,000
$
8.00 $
0
Purchases:
January 10
January 18
3,000
$ 9.00
27,000
2,000 $
9.00
4,000
$10.00
40,000
$ 10.00
18,000
0
6
Total
11,000
$
99,000
6,000
$
50,000
0
$
9.00
0
10.00
0
$
0
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] A company began January with 4,000 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 Units January 10 3,000 Purchases Unit Cost* $ 9 Total Cost January 18 4,000 10 $ 27,000 40,000 Totals 7,000 $ 67,000 * Includes purchase price and cost of freight. Sales Date of Sale Units January 5 2,000 January 12 1,000 January 201 3,000 Total 6,000 5,000 units were on hand at the end of the month. Required: 1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system. Ending Inventory - Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO FIFO Number Cost per of units unit Cost of Goods Available for Sale Number of Cost per units sold unit Cost of Goods Sold Number of units in ending Cost per Ending unit Inventory inventory Beginning Inventory 4,000 $ 8.00 $ 32,000 4,000 $ 8.00 $ 32,000 $ 8.00 $ 0 Purchases: January 10 January 18 3,000 $ 9.00 27,000 2,000 $ 9.00 4,000 $10.00 40,000 $ 10.00 18,000 0 6 Total 11,000 $ 99,000 6,000 $ 50,000 0 $ 9.00 0 10.00 0 $ 0
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