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[The following information applies to the questions displayed below.] Ferris Company began January with 8,000 units of its principal product. The cost of each unit is $6. Merchandise transactions for the month of January are as follows:

Jan.10 6000. units $ 7 unit cost*. $42000 total cost

Jan. 18 8000 units $8 unit cost*. $64000 total cost. * Includes purchase price and cost of freight.

Sales Jan 5. (4000 units) Jan 12. (2000 units) Jan 20 (4000 units)

Required: 12,000 units were on hand at the end of the month.

1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system.

FIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Ending Inventory - Periodic FIFO # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning Inventory $0 $0.00 $0 $0.00 $0 Purchases: January 10 0 $0.00 0 $0.00 0 January 18 0 $0.00 0 $0.00 0 Total 0 $0 0 $0 0 $0

2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system.

3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.

Perpetual FIFO: Cost of Goods Available for Sale Cost of Goods Sold - January 5 Cost of Goods Sold - January 12 Cost of Goods Sold - January 20 Inventory Balance # of units Unit Cost Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beg. Inventory $6.00 $0 Purchases: January 10 January 18 Total

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 Ending Inventory - Average Cost # of units Unit Cost Cost of Goods Available for Sale # of units sold Average Cost per Unit Cost of Goods Sold # of units in ending inventory Average Cost per unit Ending Inventory Beginning Inventory Purchases: January 10 January 18 Total

5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system. (Round average cost per unit to 4 decimal places. Enter sales with a negative sign.)

Perpetual FIFO: Cost of Goods Available for Sale Cost of Goods Sold - January 5 Cost of Goods Sold - January 12 Cost of Goods Sold - January 20 Inventory Balance # of units Unit Cost Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beg. Inventory $0 $0.00 $0 $0.00 $0 $0.00 $0 $6.00 $0 Purchases: January 10 0 0.00 0 0.00 0 0.00 0 0.00 0 January 18 0 0.00 0 0.00 0 0.00 0 0.00 0 Total 0 $0 0 $0 0 $0 0 $0 0 $0

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