Question

Required information (The following information applies to the questions displayed below.) Ferris Company began January with 8,000 units of its principal product. The cost of each unit is $6. Merchandise transactions for the month of January are as follows: Purchases Unit Cost $ 7 Date of Purchase Jan. 10 Jan. 18 Totals Units 6,000 8,000 14,000 Total Cost $ 42,000 64,000 106,000 * Includes purchase price and cost of freight. Sales Date of Sale Jan. 5 Jan. 12 Jan. 20 Total Units 4,000 2.000 4,000 10,000 12,000 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 Sold - Periodic LIFO Ending Inventory - Periodic LIFO Cost of Goods Available for Sale Cost of # of units Cost per Goods unit Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory $ 0.00 $ $ 0.00 $ Beginning Inventory Purchases: January 10 January 18 Total $ $ 0.00 0.00 $ $ 0.00 0.00 0 01

Answer 1

LIFO	Cost of goods available for sale			Cost of goods sold			Ending inventory
	Units	Rate	total	Units	Rate	total	Units	Rate	total
Beginning inventory	8,000	$   6	$    48,000	-	$   6	$             -	8,000	6	$ 48,000
Purchases
Jan-10	6,000	$   7	$    42,000	2,000	$   7	$ 14,000	4,000	$   7	$ 28,000
Jan-18	8,000	$   8	$    64,000	8,000	$   8	$ 64,000	-	$    -	$             -
Total	22,000		$ 154,000	10,000		$ 78,000	12,000		$ 76,000

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