Ferris Company began 2018 with 7,000 units of its principal product. The cost of each...
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Accounting
Ferris Company began 2018 with 7,000 units of its principal product. The cost of each unit is $6. Merchandise transactions for the month of January 2018 are as follows:
Purchases
Date of Purchase
Units
Unit Cost*
Total Cost
Jan. 10
6,000
$
7
$
42,000
Jan. 18
7,000
8
56,000
Totals
13,000
98,000
*Includes purchase price and cost of freight.
Sales
Date of Sale
Units
Jan. 5
3,000
Jan. 12
1,000
Jan. 20
4,000
Total
8,000
12,000 units were on hand at the end of the month. Required: Calculate January's ending inventory and cost of goods sold for the month using each of the following alternatives: 1. FIFO, periodic system. 2. LIFO, periodic system. 3. LIFO, perpetual system. 4. Average cost, periodic system. 5. Average cost, perpetual system.
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