Question

Ferris Company began 2018 with 5,000 units of its principal product. The cost of each unit is $9. Merchandise transactions for the month of January 2018 are as follows:

	Purchases
Date of Purchase	Units		Unit Cost*			Total Cost
Jan. 10	6,000		$	10			$	60,000
Jan. 18	5,000			11				55,000
Totals	11,000							115,000

*Includes purchase price and cost of freight.

Sales
Date of Sale	Units
Jan. 5	3,000
Jan. 12	3,000
Jan. 20	4,000
Total	10,000

6,000 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.

Required 1Required 2 Required 3Required 4 Required 5 Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system Cost of Goods Available for Sale Cost of Goods Sold Periodic FIFO Ending Inventory Periodic FIFO Cost of # of units Cost ofin ending cost per Ending Inventory Cost per Goods # of units Cost per # of units unit Available forsold Sale Sold inventory unit G unit 000$ $ 0.00 $ Beginning Inventory Purchases S 0.00 S 0.00 $ 0.00 $ 0.00 January 10 January 18 Total

Answer 1

Cost of goods sold and Ending Inventory is as calculated below:

FIFO	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	No. of units	Cost per unit	Cost of goods available for sale	No. of units	Cost per unit	Cost of goods sold	No. of units	Cost per unit	Ending Inventory
Beginning Inventory	5,000	9	45,000	5,000	9	45,000
Purchases:
January 10	6,000	10	60,000	5,000	10	50,000	1,000	10	10,000
January 18	5,000	11	55,000			0	5,000	11	55,000
Total	16,000		160,000	10,000		95,000	6,000		65,000
LIFO	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	No. of units	Cost per unit	Cost of goods available for sale	No. of units	Cost per unit	Cost of goods sold	No. of units	Cost per unit	Ending Inventory
Beginning Inventory	5,000	9	45,000				5,000	9	45,000
Purchases:
January 10	6,000	10	60,000	5,000	10	50,000	1,000	10	10,000
January 18	5,000	11	55,000	5,000	11	55,000
Total	16,000		160,000	10,000		105,000	6,000		55,000

LIFO	Cost of goods available for sale			Cost of goods sold- January 5			Cost of goods sold- January 12			Cost of goods sold- Jnauary 20			Ending Inventory
	No. of units	Cost per unit	Cost of goods available for sale	No. of units	Cost per unit	Cost of goods sold	No. of units	Cost per unit	Cost of goods sold	No. of units	Cost per unit	Cost of goods sold	No. of units	Cost per unit	Ending Inventory
Beginning Inventory	5,000	9	45,000	3,000	9	27,000							2,000	9	18,000
Purchases:
January 10	6,000	10	60,000				3,000	10	30,000				3,000	10	30,000
January 18	5,000	11	55,000							4,000	11	44,000	1,000	11	11,000
Total	16,000		160,000	3,000		27,000	3,000		30,000	4,000		44,000	6,000		59,000

Average Cost	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	No. of units	Cost per unit	Cost of goods available for sale	No. of units	Cost per unit	Cost of goods sold	No. of units	Cost per unit	Ending Inventory
Beginning Inventory	5,000	9	45,000	10,000	10	100,000	6,000	10	60,000
Purchases:
January 10	6,000	10	60,000
January 18	5,000	11	55,000
Total	16,000	10	160,000	10,000		100,000	6,000		60,000

	Inventory on hand			Cost of goods sold
Perpetual Average	No. of units	Cost per unit	Inventory value	No. of units	Avg.Cost per unit	Cost of goods sold
Beginning Inventory	5,000	9.0000	45000
sale-jan 5	-3,000	9.0000	-27000	3,000	9.0000	27000
Subtotal average cost	2,000	9.0000	18,000
Purchase -Jan 10	6,000	10.0000	60000
Subtotal average cost	8,000	9.7500	78,000
Sale-Jan 12	-3,000	9.7500	-29250	3,000	9.7500	29250
Subtotal average cost	5,000	9.7500	48,750
Purchase-jan 18	5,000	11.0000	55000
Subtotal average cost	10,000	10.3750	103,750
Sale-jan 20	-4,000	10.3750	-41500	4,000	10.3750	41500
Total	6,000		62,250	10,000		97,750