Question

Required information (The following information applies to the questions displayed below.) Ferris Company began January with 8,000 units of its principal product. The cost of each unit is $6. Merchandise transactions for the month of January are as follows: Purchases $ 7 Date of Purchase Jan. 10 Jan. 18 Totals 6,000 8,000 14,000 $ 42,000 64,000 106,000 * Includes purchase price and cost of freight. Sales Date of Sale Jan. 5 Jan. 12 Jan. 20 Total Units 4,000 2,000 4,000 10,000 12,000 units were on hand at the end of the month. 3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system. Cost of Goods Available for Sale Cost of Goods Sold - January 5 Cost of Goods Sold - January 12 Cost of Goods Sold - January 20 Inventory Balance Perpetual FIFO: # of Unit Cost Cost of Goods Ending # of units sold Cost per unit Cost of Goods Sold # of units sold Cost of Goods Sold Cost per unit # of units Cost per sold unit units Cost of Goods Sold # of units in ending inventory Cost per unit Sale $ 0.00 $ $ 0.00 $ $ 0.00 6.00 $ Beg. Inventory Purchases: January 10 January 18 Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $ 0 $ $ 0 $ 0

Answer 1

Answer

Perpetual FIFO:	Cost of Goods Available for Sale			Cost of Goods Sold - Jan 5			Cost of Goods Sold - Jan 12			Cost of Goods Sold - Jan 20			Inventory Balance
	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost per unit	Cost of Goods Sold	# of units sold	Cost per unit	Cost of Goods Sold	# of units sold	Cost per unit	Cost of Goods Sold	# of units in ending inventory	Cost per unit	Ending Inventory
Beg. Inventory	8,000	$6.00	$48,000	4,000	$6.00	$24,000	2,000	$6.00	$12,000	2,000	$6.00	$12,000	-	$6.00	$0
Purchases:
Jan-10	6,000	$7.00	$42,000	-	$7.00	$0	-	$7.00	$0	2,000	$7.00	$14,000	4,000	$7.00	$28,000
Jan-18	8,000	$8.00	$64,000		$8.00	$0		$8.00			$8.00		8,000	$8.00	$64,000
Total	22,000		$154,000	4,000		$24,000	2,000		$12,000	4,000		$26,000	12,000		$92,000