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 FIFO Beginning Inventory Purchases: January 10 January 18 Units 3,000 4,000 7,000 Units 2,000 1,000 3,000 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. # of units 3,000 4,000 11,000 Cost per unit 4,000 $ 7.00 Purchases Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Cost of Goods # of units Cost per Available for sold unit Sale 28,000 Unit Cost* $ 8.00 $9.00 $8 9 $ $ Total Cost $24,000 36,000 60,000 24,000 36,000 88,000 $ $ $ Cost of Goods Sold 7.00 $ 8.00 9.00 $ 0 0 0 0 Ending Inventory - Periodic FIFO # of units in ending inventory Cost per unit $ Ending Inventory 7.00 $ S 8.00 S 9.00 $ 0 0 0
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 FIFO Beginning Inventory Purchases: January 10 January 18 Units 3,000 4,000 7,000 Units 2,000 1,000 3,000 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. # of units 3,000 4,000 11,000 Cost per unit 4,000 $ 7.00 Purchases Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Cost of Goods # of units Cost per Available for sold unit Sale 28,000 Unit Cost* $ 8.00 $9.00 $8 9 $ $ Total Cost $24,000 36,000 60,000 24,000 36,000 88,000 $ $ $ Cost of Goods Sold 7.00 $ 8.00 9.00 $ 0 0 0 0 Ending Inventory - Periodic FIFO # of units in ending inventory Cost per unit $ Ending Inventory 7.00 $ S 8.00 S 9.00 $ 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Sales
FIFO
Beginning Inventory
Purchases:
Units
3,000
4,000
7,000
* Includes purchase price and cost of freight.
January 10
January 18
—
Units
2,000
1,000
3,000
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.
Purchases
Cost
# of units per unit
Unit Cost*
4,000 $ 7.00
$8
9
3,000 $8.00
4,000 $9.00
11,000
$
Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO
Cost of
Goods
Available for
Sale
Total Cost
$24,000
36,000
60,000
28,000
=
24,000
36,000
$ 88,000
# of units
sold
0
Cost per
unit
$
$
$
Cost of
Goods Sold
7.00 $
8.00
9.00
$
0
0
0
0
Ending Inventory - Periodic FIFO
# of units
in ending
inventory
0
Cost per
unit
$
$
$
Ending
Inventory
7.00 $
8.00
9.00
$
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2F9cb45042-76a5-49ac-8355-1631e2b6f3e3%2F6tekekx_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
Sales
FIFO
Beginning Inventory
Purchases:
Units
3,000
4,000
7,000
* Includes purchase price and cost of freight.
January 10
January 18
—
Units
2,000
1,000
3,000
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.
Purchases
Cost
# of units per unit
Unit Cost*
4,000 $ 7.00
$8
9
3,000 $8.00
4,000 $9.00
11,000
$
Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO
Cost of
Goods
Available for
Sale
Total Cost
$24,000
36,000
60,000
28,000
=
24,000
36,000
$ 88,000
# of units
sold
0
Cost per
unit
$
$
$
Cost of
Goods Sold
7.00 $
8.00
9.00
$
0
0
0
0
Ending Inventory - Periodic FIFO
# of units
in ending
inventory
0
Cost per
unit
$
$
$
Ending
Inventory
7.00 $
8.00
9.00
$
0
0
0
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