Question

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

Answer 1

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