Question

Ferris Company began January with 4,000 units of its principal product. The cost of each unit is $6. Merchandise transactions for the month of January are as follows:

	Purchases
Date of Purchase	Units		Unit Cost*			Total Cost
Jan. 10	3,000		$	7			$	21,000
Jan. 18	4,000			8				32,000
Totals	7,000							53,000

* Includes purchase price and cost of freight.

Sales
Date of Sale	Units
Jan. 5	2,000
Jan. 12	1,000
Jan. 20	3,000
Total	6,000

5,000 units were on hand at the end of the month.

Required:
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	4,000	$6.00	$24,000		$6.00	$0		$6.00	$0
Purchases:
January 10	3,000	$7.00	21,000		$7.00	0		$7.00	0
January 18	4,000	$8.00	32,000		$8.00	0		$8.00	0
Total	11,000		$77,000	0		$0	0		$0

Answer 1