Question

Required information [The following information applies to the questions displayed below.) Ferris Company began January with 7,000 units of its principal product. The cost of each unit is $6. Merchandise transactions for the month of January are as follows: Date of Purchase Jan. 10 Jan. 18 Totals Units 6,000 7,000 13,000 Purchases Unit Cost* $ 7 8 Total Cost $ 42,000 56,000 98,000 * Includes purchase price and cost of freight. Sales Date of Sale Jan. 5 Jan. 12 Jan. 20 Total Units 3,000 1,000 4,000 8,000 12,000 units were on hand at the end of the month. 1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system. Cost of Goods Sold - Periodic FIFO Ending Inventory - Periodic FIFO FIFO Cost of Goods Available for Sale Cost of # of units Cost per Goods unit Available for Sale 7,000 $ 6.00 $ 42,000 Cost per # of units sold Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory unit 7,000 $ 6.00 $ 42,000 0 $ 6.00 $ Beginning Inventory Purchases: January 10 January 18 Total 0 0 42,000 $ $ 0. 000 0. 00 0 $ 42,000 $ 0. 000 $ 0.00 $ 7,000 $ 7,000 0 0 0

Answer 1

		cost of goods available for sale			Cost of good sold			ending invnetory
Periodic FIFO		#of	cost per	Cost of goods	#of	cost per	Cost of goods	#of	cost per	ending
		units	unit	available	units	unit	sold	units	unit	inventory
Beginning inventory		7000	6	42,000	7000	6	42000
purchases:
10-Jan		6000	7	42,000	1000	7	7000	5000	7	35000
18-Jan		7000	8	56,000				7000	8	56000
total		20000		140,000	8000		49000	12000		91000