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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 4PEB: Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory...
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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.

 

4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system. Cost of Goods Available for Sale Cost of Goods Sold - Average Cost Ending Inventory - Average Cost Cost of Goods Available for Sale Average Cost per Unit # of units in ending inventory Average Cost per unit Average Cost Cost of Unit Cost # of units Ending Inventory # of units sold Goods Sold Beginning Inventory 4,000 $ 8.00 $ 32,000 Purchases: January 10 3,000 $ 9.00 27,000 January 18 4,000 $ 10.00 40,000 Total 11.000 $ 99,000 $ $
Transcribed Image Text:4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system. Cost of Goods Available for Sale Cost of Goods Sold - Average Cost Ending Inventory - Average Cost Cost of Goods Available for Sale Average Cost per Unit # of units in ending inventory Average Cost per unit Average Cost Cost of Unit Cost # of units Ending Inventory # of units sold Goods Sold Beginning Inventory 4,000 $ 8.00 $ 32,000 Purchases: January 10 3,000 $ 9.00 27,000 January 18 4,000 $ 10.00 40,000 Total 11.000 $ 99,000 $ $
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