Required information
Problem 8-5 (Algo) Various inventory costing methods [LO8-1,8-4]
Skip to question
[The following information applies to the questionsdisplayed below.]
Ferris Company began January with 7,000 units of its principalproduct. The cost of each unit is $6. Merchandise transactions forthe month of January 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.
Problem 8-5 (Algo) Part 1
Required:
1. Calculate January's ending inventory and costof goods sold for the month using FIFO, periodic system.
2. Calculate January's ending inventory andcost of goods sold for the month using LIFO, periodic system.
4. Calculate January's ending inventory andcost of goods sold for the month using Average cost, periodicsystem.
5. Calculate January's ending inventory andcost of goods sold for the month using Average cost, perpetualsystem. (Round average cost per unit to 4 decimal places.Enter sales with a negative sign.)
