Required information Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4] [The following information applies to the questions displayed below.] A company began January with 8,000 units of its principal product. The cost of each unit is $8. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Date of Sale January 5 January 12 January 20 Total * Includes purchase price and cost of freight. Sales Perpetual FIFO: Units 6,000 8,000 14,000 Problem 8-5 (Algo) Part 3 Beginning Inventory Purchases: January 10. January 18 Units Total 4,000 2,000 5,000 11,000 11,000 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. Number of units Purchases Unit Cost* Cost of Goods Available for Sale $9 10 Unit Cost 6,000 8,000 22,000 8,000 $8.00 $ 9.00 10.00 Total Cost $ 54,000 80,000 $ 134,000 Cost of Number Goods of units Available for sold Sale 64,000 54,000 80,000 $ 198,000 Cost of Goods Sold - January 5 0 Cost per unit $ Cost of Goods Sold 8.00 $ 9.00 10.00 $ 0 0 0 0 Cost of Goods Sold - Jarruary 12 Number of units sold 0 Cost per unit $ 8.00 9.00 10.00 Cost of Goods Sold $ $ 0 0 0 0 Cost of Goods Sold January 20 Number of units sold 0 Cost per unit $ 8.00 9.00 10.00 Cost of Goods Sold $ $ 0 Inventory Balance Number of units in ending inventory of 0 0 0 0 Cost per unit $ Ending Inventory 8.00 $ 9.00 10.00 $ 0 0 0 0
Required information Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4] [The following information applies to the questions displayed below.] A company began January with 8,000 units of its principal product. The cost of each unit is $8. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Date of Sale January 5 January 12 January 20 Total * Includes purchase price and cost of freight. Sales Perpetual FIFO: Units 6,000 8,000 14,000 Problem 8-5 (Algo) Part 3 Beginning Inventory Purchases: January 10. January 18 Units Total 4,000 2,000 5,000 11,000 11,000 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. Number of units Purchases Unit Cost* Cost of Goods Available for Sale $9 10 Unit Cost 6,000 8,000 22,000 8,000 $8.00 $ 9.00 10.00 Total Cost $ 54,000 80,000 $ 134,000 Cost of Number Goods of units Available for sold Sale 64,000 54,000 80,000 $ 198,000 Cost of Goods Sold - January 5 0 Cost per unit $ Cost of Goods Sold 8.00 $ 9.00 10.00 $ 0 0 0 0 Cost of Goods Sold - Jarruary 12 Number of units sold 0 Cost per unit $ 8.00 9.00 10.00 Cost of Goods Sold $ $ 0 0 0 0 Cost of Goods Sold January 20 Number of units sold 0 Cost per unit $ 8.00 9.00 10.00 Cost of Goods Sold $ $ 0 Inventory Balance Number of units in ending inventory of 0 0 0 0 Cost per unit $ Ending Inventory 8.00 $ 9.00 10.00 $ 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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