Question

Ferris Company began January with 4,000 units of its principal product. The cost of each unit is $7. Merchandise transactions for the month of January are as follows:

	Purchases
Date of Purchase	Units		Unit Cost*			Total Cost
Jan. 10	3,000		$	8			$	24,000
Jan. 18	4,000			9				36,000
Totals	7,000							60,000

* Includes purchase price and cost of freight.

Sales
Date of Sale	Units
Jan. 5	2,000
Jan. 12	1,000
Jan. 20	3,000
Total	6,000

5,000 units were on hand at the end of the month.

Required:
1. Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system.
Cost of Goods Sold - Periodic FIFO Ending Inventory - Periodic FIFO Cost of Goods Available for Sale Cost of # of units Cost per Goods unit Available for FIFO # of units Cost per # of units in ending inventory Cost of Goods Sold Cost per Ending Inventory unit unit Sale $ 0.00 $ $ 0.00 $ Beginning Inventory Purchases: January 10 January 18 Total 0 0 0 $ $ 0. 00 0. 00 0 0 $ $ 0.00 0.00 0 0 $ 0 0 0 $

Answer 1

1
	Cost of goods available for sale			Cost of goods sold			Ending Inventory
FIFO	# of units	Cost per unit	Total	# of units	Cost per unit	Total	# of units	Cost per unit	Total
Beginning Inventory	4000	7	28000	4000	7	28000	0	7	0
Purchases:
January 10	3000	8	24000	2000	8	16000	1000	8	8000
January 18	4000	9	36000	0	9	0	4000	9	36000
Total	11000		88000	6000		44000	5000		44000
2
	Cost of goods available for sale			Cost of goods sold			Ending Inventory
LIFO	# of units	Cost per unit	Total	# of units	Cost per unit	Total	# of units	Cost per unit	Total
Beginning Inventory	4000	7	28000	0	7	0	4000	7	28000
Purchases:
January 10	3000	8	24000	2000	8	16000	1000	8	8000
January 18	4000	9	36000	4000	9	36000	0	9	0
Total	11000		88000	6000		52000	5000		36000