Question

Ferris Company began January with 4,000 units of its principal product. The cost of each unit...


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

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