Ferris Company began 2016 with 6,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January 2016 are as follows: Purchases Date of Purchase Total Cost Units Unit Cost* $ 9 $ 45,000 60,000 Jan. 10 5,000 6,000 Jan. 18 10 Totals 11,000 $105,000 *Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 3,000 2,000 4,000 Jan. 12 Jan. 20 Total 9,000 8,000 units were on hand at the end of the month.
Ferris Company began 2016 with 6,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January 2016 are as follows: Purchases Date of Purchase Total Cost Units Unit Cost* $ 9 $ 45,000 60,000 Jan. 10 5,000 6,000 Jan. 18 10 Totals 11,000 $105,000 *Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 3,000 2,000 4,000 Jan. 12 Jan. 20 Total 9,000 8,000 units were on hand at the end of the month.
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 6EA: Logo Gear purchased $2,250 worth of merchandise during the month, and its monthly income statement...
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Required: Calculate January’s ending inventory and cost of goods sold for the month using each of the following alternatives: 1. FIFO, periodic system 2. LIFO, periodic system 3. LIFO, perpetual system 4. Average cost, periodic system 5. Average cost, perpetual system
Transcribed Image Text:Ferris Company began 2016 with 6,000 units of its principal product. The cost of each unit is $8. Merchandise
transactions for the month of January 2016 are as follows:
Purchases
Date of Purchase
Total Cost
Units
Unit Cost*
$ 9
$ 45,000
60,000
Jan. 10
5,000
6,000
Jan. 18
10
Totals
11,000
$105,000
*Includes purchase price and cost of freight.
Sales
Date of Sale
Units
Jan. 5
3,000
2,000
4,000
Jan. 12
Jan. 20
Total
9,000
8,000 units were on hand at the end of the month.
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