[The following information applies to the questions displayed below.j A company began January with 4,000 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 Units January 10 3,000 Purchases Unit Cost⭑ $ 7 Total Cost January 18 4,000 8 $ 21,000 32,000 Totals 7,000 $ 53,000 *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. Cost of Goods Available for Sale Average Cost Number of units Unit Cost Cost of Goods Available for Sale Number of units sold 4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system. Average Cost per Unit Ending Inventory - Average Cost Number of units in ending inventory Average Cost per unit Ending Inventory Cost of Goods Sold - Average Cost Cost of Goods Sold Beginning Inventory 4,000 $ 6.00 $ 24,000 Purchases: January 10 3,000 $ 7.00 21,000 January 18 4,000 $ 8.00 32,000 Total 11,000 $ 77,000

[The following information applies to the questions displayed below.j A company began January with 4,000 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 Units January 10 3,000 Purchases Unit Cost⭑ $ 7 Total Cost January 18 4,000 8 $ 21,000 32,000 Totals 7,000 $ 53,000 *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. Cost of Goods Available for Sale Average Cost Number of units Unit Cost Cost of Goods Available for Sale Number of units sold 4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system. Average Cost per Unit Ending Inventory - Average Cost Number of units in ending inventory Average Cost per unit Ending Inventory Cost of Goods Sold - Average Cost Cost of Goods Sold Beginning Inventory 4,000 $ 6.00 $ 24,000 Purchases: January 10 3,000 $ 7.00 21,000 January 18 4,000 $ 8.00 32,000 Total 11,000 $ 77,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 8P: Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning...

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