Question

Ferris Company began January with 7,000 units of its principal product. The cost of each unit is $9. Merchandise transactions for the month of January are as follows:

	Purchases
Date of Purchase	Units		Unit Cost*			Total Cost
Jan. 10	6,000		$	10			$	60,000
Jan. 18	7,000			11				77,000
Totals	13,000							137,000

* Includes purchase price and cost of freight.

Sales
Date of Sale	Units
Jan. 5	3,000
Jan. 12	1,000
Jan. 20	4,000
Total	8,000

12,000 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.

Required: 1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system. Answer ie complete but not entirely correct. Cost of Goods Available for Cost of Goods Sold-Periodic Ending Inventory - Periodic FIFO Sale FIFO Cost of Goods Available for Sale #of units in ending inventory FIFO Cost of Cost of Goods Sold # of units Cost Cost Ending Inventory units per unit per unit per unit sold Beginning Inventory Purchases 7,000 $9.00 $ $ 63,000 7,000 $ $ 63,000 $ 9.00 9.00 $ 6,000 10.00 $ 10.00 60,000 x$ $ 10.00 3,000 $ January 10 60,000 30,000 600,000 $ 11.00 77,000 0 $ January 18 7,000 847,000 77,000 0 11.00 11.00 $ 1,447,000 $ 200,000 $ 93,000 20,000 10,000 137,000 Total

Answer 1

Cost of Goods Available for sale Cost of Goods sold - Periodic FIFO Ending inventory - periodic FIFO Cost of FIFO Goods Cost Cost of Cost Ending #of Units #of Units # of Units Cost per Unit per Unit Goods sold per Unit inventory Available for sale 7000 Beginning Inventory Purchases January. 10 January.18 Total 7000 $9 $63,000 $9 $63,000 6000 7000 20000 1000 0 8000 $10,000 5000 7000 $60,000 $10 $50,000 $10 10 $11 $0 $11 $77,000 S77.000 $0 $200,000 12000 $73.000 $127,000