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 $6. 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. Units Purchases 4,000 2,000 4,000 10,000 Unit Cost $7 12,000 units were on hand at the end of the month. Total Cost $ 42,000 64,000 $.106,000
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 $6. 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. Units Purchases 4,000 2,000 4,000 10,000 Unit Cost $7 12,000 units were on hand at the end of the month. Total Cost $ 42,000 64,000 $.106,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system.
Note: Round average cost per unit to 4 decimal places. Enter sales with a negative sign.
Perpetual Average
Beginning Inventory
Sale-January 5
Subtotal Average Cost
Purchase-January 10
Subtotal Average Cost
Sale-January 12
Subtotal Average Cost
Purchase-January 18
Subtotal Average Cost
Sale-January 20
Total
Inventory on hand
Number Cost per
of units unit
Inventory
Value
Cost of Goods Sold
Average
Cost per
unit
Number
of units
sold
Cost of
Goods Sold
![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 $6. 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.
Units
Purchases
4,000
2,000
4,000
10,000
Unit Cost
$7
12,000 units were on hand at the end of the month.
Total Cost
$ 42,000
64,000
$.106,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc49b70e-3bee-4d78-855e-9a8fe26fc256%2F98f18222-5940-46b2-a31e-700e0f6e2d4c%2Fz589s59_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 $6. 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.
Units
Purchases
4,000
2,000
4,000
10,000
Unit Cost
$7
12,000 units were on hand at the end of the month.
Total Cost
$ 42,000
64,000
$.106,000
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