2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. !Required Information[The following information applies to the questions displayed below.]A company began January with 9,000 units of its principal product. The cost of each unit is $5. Inventory transactions forthe month of January are as follows:Date of PurchaseJanuary 10January 18TotalsTotalDate of SaleJanuary 5January 12January 201Total* Includes purchase price and cost of freight.SalesLIFOBeginning InventoryPurchases:UnitsJanuary 10January 186,0009,00015,000Units5,0003,0006,00014,00010,000 units were on hand at the end of the month.2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system.PurchasesUnit Cost*$67Number Cost perof units unitCost of Goods Available for SaleCost ofGoodsAvailable forSale9,000 $5.00 $ 45,0006,000 $6.009,000 $7.0024,000$Total Cost$ 36,00063,000$ 99,00036,00063,000144,000Cost of Goods Sold - Periodic LIFONumber of Cost perunits sold unitCost ofGoods Sold0$$$5.006.007.00$$0000Ending Inventory - Periodic LIFONumber ofunits inendinginventory0Cost perunit$$$EndingInventory5.00 $6.007.00$0000

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Description: 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. !Required Information[The following information applies to the questions displayed below.]A company began January with 9,000 units of its princi

LIFO means last in first out, thus the latest purchases will be sold first hence ending inventory…

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A company began January with 9,000 units of its principal product. The cost of each unit is $5. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals otal * Includes purchase price and cost of freight. Date of Sale January 5 January 12 January 20 Total Sales LIFO eginning Inventory urchases: Units 6,000 9,000 15,000 January 10 January 18 Units 10,000 units were on hand at the end of the month. 5,000 3,000 6,000 14,000 Calculate January's ending Inventory and cost of goods sold for the month using LIFO, periodic system. Purchases Unit Cost* $6 7 Cost of Goods Available for Sale Cost of Goods Available for Sale 9,000 $5.00 $ 45,000 Number Cost per of units unit 6,000 $6.00 9,000 $ 7.00 24,000 $ Total Cost $ 36,000 63,000 $ 99,000 36,000 63,000 144,000 Cost of Goods Sold - Periodic LIFO Number of Cost per units sold unit Cost of Goods Sold 0 $ 69 $ 69 $ 5.00 $ 6.00 7.00 $ 0 0 0 0 Ending Inventory - Periodic LIFO Number of units in ending inventory 0 Cost per unit 69 $ 69 69 $ $ Ending Inventory 5.00 $ 6.00 7.00 $ 0 0 0 0

A company began January with 9,000 units of its principal product. The cost of each unit is $5. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals otal * Includes purchase price and cost of freight. Date of Sale January 5 January 12 January 20 Total Sales LIFO eginning Inventory urchases: Units 6,000 9,000 15,000 January 10 January 18 Units 10,000 units were on hand at the end of the month. 5,000 3,000 6,000 14,000 Calculate January's ending Inventory and cost of goods sold for the month using LIFO, periodic system. Purchases Unit Cost* $6 7 Cost of Goods Available for Sale Cost of Goods Available for Sale 9,000 $5.00 $ 45,000 Number Cost per of units unit 6,000 $6.00 9,000 $ 7.00 24,000 $ Total Cost $ 36,000 63,000 $ 99,000 36,000 63,000 144,000 Cost of Goods Sold - Periodic LIFO Number of Cost per units sold unit Cost of Goods Sold 0 $ 69 $ 69 $ 5.00 $ 6.00 7.00 $ 0 0 0 0 Ending Inventory - Periodic LIFO Number of units in ending inventory 0 Cost per unit 69 $ 69 69 $ $ Ending Inventory 5.00 $ 6.00 7.00 $ 0 0 0 0

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.11E: Inventory Costing Methods VanderMeer Inc. reported the following information for the month of...

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