Question

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.

Problem 8-5 (Algo) Part 5

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 Average	Inventory on hand			Cost of Goods Sold
	# of units	Cost per unit	Inventory Value	# of units sold	Avg.Cost per unit	Cost of Goods Sold
Beginning Inventory
Sale - January 5
Subtotal Average Cost
Purchase - January 10
Subtotal Average Cost
Sale - January 12
Subtotal Average Cost
Purchase - January 18
Subtotal Average Cost
Sale - January 20
Total

Answer 1

Perpetual Average	Inventory on hand	Cost of goods sold
	# of units	Cost per unit	Inventory value	# of units sold	Avg. cost per unit	Cost of goods sold
Beginning inventory	8,000	$9	$72,000
Sale - January 5	-3,000	9	-27,000	3,000	$9	$27,000
Subtotal Average cost	5,000	9	45,000
Purchase - January 10	5,000	10	50,000
Subtotal Average cost	10,000	9.5	95,000
Sale - January 12	-3,000	9.5	-28,500	3,000	9.5	28,500
Subtotal Average cost	7,000	9.5	66,500
Purchase - January 18	8,000	11	88,000
Subtotal Average cost	15,000	10.3	154,500
Sale - January 20	-4,000	10.3	-41,200	4,000	10.3	41,200
Total	11,000		$113,300	10,000		$96,700