Question

Ferris Company began January with 7,000 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 7,000 13,000 Total Cost $42,000 56,000 98,000 * Includes purchase price and cost of freight. Sales Date of Sale Jan. 5 Jan. 12 Jan. 20 Total Units 3,000 1,000 4,000 8,000 12,000 units were on hand at the end of the month. 5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system. (Round average cost per unit to 4 decimal places. Enter sales with a negative sign.)

Thank you!

Answer 1

Y6 Solution Inventory on hand I cost of goods sold No.of Perpetual Allerage cost per Hoe of Inventory Allg.cost cost of units unit value Units por unt goods sold Beginning inventory 46 $42000 7000 sale- January 5 - 3000 $6 -$18000 subtotal aug. cost / 4000 24000 Purchase - January co 6000 $7 42000 $ 6.6 66000 Subtotal aug. cost! 10000 sale - January 12 -1000 $6-6 - $6600 subtotal aug. cost 9000 $606 59400 Purchase- January 18 7000 56000 Subtotal ang cost 16000 to 2125 115400 7-2125 -288 sale - January 20 total 12000 1.2125 865501 - 8000 -53450 4000 Thanks