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Required information Skip to question   [The following information applies to the questions displayed below.] Ferris Company began January with 4,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows:     Purchases Date of Purchase Units   Unit Cost* Total Cost Jan. 10 3,000   $ 9     $ 27,000   Jan. 18 4,000     10       40,000   Totals 7,000             67,000     * Includes purchase price and cost of freight.     Sales Date of Sale Units   Jan. 5 2,000   Jan. 12 1,000   Jan. 20 3,000   Total 6,000       5,000 units were on hand at the end of the month.

Required information Skip to question   [The following information applies to the questions displayed below.] Ferris Company began January with 4,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows:     Purchases Date of Purchase Units   Unit Cost* Total Cost Jan. 10 3,000   $ 9     $ 27,000   Jan. 18 4,000     10       40,000   Totals 7,000             67,000     * Includes purchase price and cost of freight.     Sales Date of Sale Units   Jan. 5 2,000   Jan. 12 1,000   Jan. 20 3,000   Total 6,000       5,000 units were on hand at the end of the month.

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 4PB: The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are...
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[The following information applies to the questions displayed below.]


Ferris Company began January with 4,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows:
 

  Purchases
Date of Purchase Units   Unit Cost* Total Cost
Jan. 10 3,000   $ 9     $ 27,000  
Jan. 18 4,000     10       40,000  
Totals 7,000             67,000  
 


* Includes purchase price and cost of freight.  
 

Sales
Date of Sale Units  
Jan. 5 2,000  
Jan. 12 1,000  
Jan. 20 3,000  
Total 6,000  
 

 
5,000 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. Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Ending Inventory - Periodic LIFO Cost of Goods Available for Sale # of units in ending inventory LIFO # of units Cost per unit # of units sold Cost per unit Cost of Cost per unit Ending Inventory Goods Sold Beginning Inventory 4,000 $ 8.00 $ 32,000 8.00 $ 8.00 $ Purchases: 3,000 $ 9.00 4,000 $ 10.00 January 10 27,000 $ 9.00 $ 9.00 January 18 40,000 $ 10.00 $ 10.00 Total 11,000 99,000 $ $
Transcribed Image Text:2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Ending Inventory - Periodic LIFO Cost of Goods Available for Sale # of units in ending inventory LIFO # of units Cost per unit # of units sold Cost per unit Cost of Cost per unit Ending Inventory Goods Sold Beginning Inventory 4,000 $ 8.00 $ 32,000 8.00 $ 8.00 $ Purchases: 3,000 $ 9.00 4,000 $ 10.00 January 10 27,000 $ 9.00 $ 9.00 January 18 40,000 $ 10.00 $ 10.00 Total 11,000 99,000 $ $
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