[The following information applies to the questions displayed below.] A company began January with 7,000 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 Total Date of Sale January 5 January 12 January 20 Total * Includes purchase price and cost of freight. Sales LIFO Beginning Inventory Purchases: Units January 10 January 18 6,000 7,000 13,000 Units 10,000 units were on hand at the end of the month. 3,000 3,000 4,000 10,000 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. Purchases Unit Cost $7 8 Cost of Goods Available for Sale Cost of Goods Available for Sale $ 42,000 Number Cost per of units unit 7,000 $ 6.00 6,000 $ 7.00 7,000 $8.00 20.000 S Total Cost $ 42,000 56,000 $ 98,000 42,000 56,000 140.000 Cost of Goods Sold - Periodic LIFO Number of units sold Cost per unit $ $ $ 6.00 7.00 8.00 Cost of Goods Sold Ending Inventory - Periodic LIFO Number of units in ending inventory Cost per unit $ S $ 6.00 7.00 8.00 Ending Inventory

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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[The following information applies to the questions displayed below.]
A company began January with 7,000 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
Total
* Includes purchase price and cost of freight.
Date of Sale
January 5
January 12
January 20
Total
Sales
LIFO
Beginning Inventory
Purchases:
Units
6,000
7,000
13,000
January 10
January 18
Units
10,000 units were on hand at the end of the month.
3,000
3,000
4,000
10,000
2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system.
Cost of Goods Available for Sale
Cost of
Goods
Available for
Sale
Number Cost per
of units unit
Purchases
Unit Cost*
$7
8
7,000 $ 6.00
6,000 $ 7.00
7,000 $ 8.00
20,000
$
$
42,000
Total Cost
$ 42,000
56,000
$ 98,000
42,000
56,000
140,000
Cost of Goods Sold - Periodic LIFO
Cost of
Goods Sold
Number of
units sold
Cost per
unit
$
6.00
$ 7.00
$
8.00
Ending Inventory - Periodic LIFO
Number of
units in
ending
inventory
Cost per
unit
$
$
$
6.00
7.00
8.00
Ending
Inventory
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] A company began January with 7,000 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 Total * Includes purchase price and cost of freight. Date of Sale January 5 January 12 January 20 Total Sales LIFO Beginning Inventory Purchases: Units 6,000 7,000 13,000 January 10 January 18 Units 10,000 units were on hand at the end of the month. 3,000 3,000 4,000 10,000 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. Cost of Goods Available for Sale Cost of Goods Available for Sale Number Cost per of units unit Purchases Unit Cost* $7 8 7,000 $ 6.00 6,000 $ 7.00 7,000 $ 8.00 20,000 $ $ 42,000 Total Cost $ 42,000 56,000 $ 98,000 42,000 56,000 140,000 Cost of Goods Sold - Periodic LIFO Cost of Goods Sold Number of units sold Cost per unit $ 6.00 $ 7.00 $ 8.00 Ending Inventory - Periodic LIFO Number of units in ending inventory Cost per unit $ $ $ 6.00 7.00 8.00 Ending Inventory
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