Chapter 8, Problem 8.5P

Various inventory costing methods

• LO8–1, LO8–4

Ferris Company began 2018 with 6,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January 2018 are as follows:

Sales
Date of Sale	Units
Jan. 5	3,000
Jan. 12	2,000
Jan. 20	4,000
Total	9,000

8,000 units were on hand at the end of the month.

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