Question

# Ferris Company began 2018 with 9,000 units of its principal product. The cost of each unit...

Ferris Company began 2018 with 9,000 units of its principal product. The cost of each unit is \$4. Merchandise transactions for the month of January 2018 are as follows:

 Purchases Date of Purchase Units Unit Cost* Total Cost Jan. 10 6,000 \$ 5 \$ 30,000 Jan. 18 9,000 6 54,000 Totals 15,000 84,000

*Includes purchase price and cost of freight.

 Sales Date of Sale Units Jan. 5 5,000 Jan. 12 3,000 Jan. 20 6,000 Total 14,000

10,000 units were on hand at the end of the month.

Required:
Calculate January's ending inventory and cost of goods sold for the month using each of the following alternatives:
1. FIFO, periodic system.
2. LIFO, periodic system.
3. LIFO, perpetual system.
4. Average cost, periodic system.
5. Average cost, perpetual system.

• Required 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 \$0 Purchases: January 10 0 January 18 0 Total 0 \$0 \$0 \$0
• Required 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 \$0 Sale - January 5 0 Subtotal Average Cost 0 0 Purchase - January 10 0 Subtotal Average Cost 0 0 Sale - January 12 0 Subtotal Average Cost 0 0 Purchase - January 18 0 Subtotal Average Cost 0 0 Sale - January 20 0 Total 0 \$0 0 \$0

4.

 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 9000 4 \$ 36,000 14000 5 70000 10000 5 50000 Purchases: Jan-10 6000 5 \$ 30,000 Jan-18 9000 6 \$ 54,000 Total 24000 5 120000 14000 70000 10000 50000

5.

 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 9000 4 \$ 36,000 Sale - January 5 5000 \$ 20,000 5000 4 \$ 20,000 Subtotal Average Cost 4000 \$ 4 16000 Purchase - January 10 6000 5 \$ 30,000 Subtotal Average Cost 10000 \$ 5 \$ 46,000 Sale - January 12 3000 15000 3000 5 15000 Subtotal Average Cost 7000 \$ 4.43 31000 Purchase - January 18 9000 6 \$ 54,000 Subtotal Average Cost 16000 \$ 5 \$ 85,000 Sale - January 20 6000 30000 6000 5 30000 Total 10000 \$ 5.50 \$ 55,000 14000 65000

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