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: Date of Purchase Jan. 10 Jan. 18 Totals Units 6,000 7,000 13,000 Purchases Unit Cost* $ 7 8 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. 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 LIFO Cost of Goods Available for Sale Cost of of units Cost per Goods unit Available for Sale # of units Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory $ 0.00 $ 0 $ 0.00 $ Beginning Inventory Purchases: January 10 January 18 Total $ $ 0.00 0.00 | $ $ 0 0.00 0.00 DOS 0 0 0 $ 0

Answer 1

• Requirement 2

LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	7000	$                   6.00	$                      42,000.00	0	$                 6.00	$                              -	7000	$                   6.00	$          42,000.00
Purchases:
10-Jan	6000	$                   7.00	$                      42,000.00	1000	$                 7.00	$                 7,000.00	5000	$                   7.00	$          35,000.00
18-Jan	7000	$                   8.00	$                      56,000.00	7000	$                 8.00	$               56,000.00	0	$                   8.00	$                         -
TOTAL	20000		$                    140,000.00	8000		$               63,000.00	12000		$          77,000.00