Required Information [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 $7. Merchandise transactions for the month of January are as follows: Date of Purchase Jan. 10 Jan. 18 Total Totals Date of Sale Jan. 5 Jan. 12 Jan. 20 Total * Includes purchase price and cost of freight. Sales Average Cost Beginning Inventory Purchases: January 10 January 18 Units 3,000 4,000 7,990 Units 2,000 1,080 3,000 6,080 5,000 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. Cost of Goods Available for Sale Cost of Goods Sold - Average Cost Cost of Goods Available for Sale Average Cost per Unit 4,000 $ 7.00 $ 28,000 # of units Purchases Unit Cost Unit Cost* 3,000 $ 8.00 4,000 $9.00 11,000 $8 9 S Total Cost $24,000 36,000 60,000 24,000 36,000 88,000 # of units sold Cost of Goods Sold Ending Inventory - Average Cost # of units in ending inventory Average Cost per unit Ending Inventory
Required Information [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 $7. Merchandise transactions for the month of January are as follows: Date of Purchase Jan. 10 Jan. 18 Total Totals Date of Sale Jan. 5 Jan. 12 Jan. 20 Total * Includes purchase price and cost of freight. Sales Average Cost Beginning Inventory Purchases: January 10 January 18 Units 3,000 4,000 7,990 Units 2,000 1,080 3,000 6,080 5,000 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. Cost of Goods Available for Sale Cost of Goods Sold - Average Cost Cost of Goods Available for Sale Average Cost per Unit 4,000 $ 7.00 $ 28,000 # of units Purchases Unit Cost Unit Cost* 3,000 $ 8.00 4,000 $9.00 11,000 $8 9 S Total Cost $24,000 36,000 60,000 24,000 36,000 88,000 # of units sold Cost of Goods Sold Ending Inventory - Average Cost # of units in ending inventory Average Cost per unit Ending Inventory
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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![Required Information
[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 $7. Merchandise
transactions for the month of January are as follows:
Date of Purchase
Jan. 10
Jan. 18
Total
Totals
Date of Sale
Jan. 5
Jan. 12.
Jan. 20
Total
* Includes purchase price and cost of freight.
Sales
Average Cost
Beginning Inventory
Purchases:
January 10
January 18
Units
3,000
4,000
7,080
Units
2,000
1,000
3,000
6,000
5,000 units were on hand at the end of the month.
Purchases
4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system.
# of units
Unit Cost
$8
9
3,000 $8.00
4,000 $9.00
11,000
Cost of Goods Available for Sale
Cost of
Unit Goods
Cost Available for
Sale
4,000 $7.00 $ 28,000
$
Total Cost
$24,000
36,000
60,000
24,000
36,000
88,000
—
Cost of Goods Sold - Average Cost
Average
Cost per
Unit
# of units
sold
Cost of
Goods Sold
Ending Inventory - Average Cost
# of units
in ending
inventory
Average
Cost per
unit
Ending
Inventory](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2F1a4d9797-39af-432c-82ce-ec1360f0d2a5%2Fl4t6ix7_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[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 $7. Merchandise
transactions for the month of January are as follows:
Date of Purchase
Jan. 10
Jan. 18
Total
Totals
Date of Sale
Jan. 5
Jan. 12.
Jan. 20
Total
* Includes purchase price and cost of freight.
Sales
Average Cost
Beginning Inventory
Purchases:
January 10
January 18
Units
3,000
4,000
7,080
Units
2,000
1,000
3,000
6,000
5,000 units were on hand at the end of the month.
Purchases
4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system.
# of units
Unit Cost
$8
9
3,000 $8.00
4,000 $9.00
11,000
Cost of Goods Available for Sale
Cost of
Unit Goods
Cost Available for
Sale
4,000 $7.00 $ 28,000
$
Total Cost
$24,000
36,000
60,000
24,000
36,000
88,000
—
Cost of Goods Sold - Average Cost
Average
Cost per
Unit
# of units
sold
Cost of
Goods Sold
Ending Inventory - Average Cost
# of units
in ending
inventory
Average
Cost per
unit
Ending
Inventory
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