O Required information (The following information applies to the questions displayed below.) Ferris Company began...
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O Required information (The following information applies to the questions displayed below.) Ferris Company began January with 7,000 units of its principal product. The cost of each unit is $6. Merchandise transactions for the month of January are as follows: Date of Purchase Jan. 10 Jan. 18 Totals Units 6,000 7,000 13,000 Purchases Unit Cost* $ 7 B Total Cost $ 42,000 56,000 98,000 * Includes purchase price and cost of freight. Sales Date of Sale Jan. 5 Jan. 12 Jan. 20 Units 3,000 1,000 4,000 8,000 Total 12,000 units were on hand at the end of the month. 4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system. Average Cost Cost of Goods Available for Sale Cost of Goods Sold - Average Cost Cost of Unit # of units Goods Average # of units Cost of Cost per Cost Available for Unit Goods Sold Sale 7,000 $ 6.00 $ 42,000 Ending Inventory - Average Cost # of units Average in ending Cost per Ending inventory unit Inventory sold Beginning Inventory Purchases: January 10 January 18 Total 42,000 6,000 7,000 20,000 $ 7.00 $ 8.00 56,000 140,000 $ $ 0 $ 0
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