Ferris Company began January with 8,000 units of its principal product. The cost of each...
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Accounting
Ferris Company began January with 8,000 units of its principal product. The cost of each unit is $9. Merchandise transactions for the month of January are as follows:
Purchases
Date of Purchase
Units
Unit Cost*
Total Cost
Jan. 10
5,000
$
10
$
50,000
Jan. 18
8,000
11
88,000
Totals
13,000
138,000
* Includes purchase price and cost of freight.
Sales
Date of Sale
Units
Jan. 5
3,000
Jan. 12
3,000
Jan. 20
4,000
Total
10,000
11,000 units were on hand at the end of the month.
2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. Cost of Goods Sold - Periodic LIFO Ending Inventory - Periodic LIFO LIFO Cost of Goods Available for Sale Cost of Cost per Goods # of units unit Available for Sale 8,000 $ 9.00 $ 72.000 # of units sold Cost per Cost per Cost of Goods Sold # of units in ending inventory Ending Inventory unit unit $ 9.00 $ 0 $ 9.00 $ 0 Beginning Inventory Purchases: January 10 January 18 Total $ 10.00 0 $ 10.00 5,000 8,000 21,000 $10.00 $ 11.00 50,000 88,000 210,000 $ 11.00 0 $ 11.00 O100 $ 0 $ 0 0 $
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