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Ferris Company began January with 9,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows:

	Purchases
Date of Purchase	Units		Unit Cost*			Total Cost
Jan. 10	6,000		$	9			$	54,000
Jan. 18	9,000			10				90,000
Totals	15,000							144,000

* Includes purchase price and cost of freight.

Sales
Date of Sale	Units
Jan. 5	5,000
Jan. 12	3,000
Jan. 20	6,000
Total	14,000

10,000 units were on hand at the end of the month.

4.Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system.

	Average Cost Cost of Goods Available for Sale Cost of Goods Sold - Average Cost Ending Inventory - Average Cost # of units Unit Cost Cost of Goods Available for Sale # of units sold Average Cost per Unit Cost of Goods Sold # of units in ending inventory Average Cost per unit Ending Inventory Beginning Inventory $0 Purchases: January 10 0 January 18 0 Total 0 $0 $0 $0

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.)

Answer 1

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Periodic
	Purchases			Cost of Goods Sold			Ending Inventory
Date	Unit	Unit Cost	Total Cost	Unit	Unit Cost	Total Cost	Unit	Unit Cost	Total Cost
Beginning	9,000	$          8.00	$       72,000
Purchases:
Jan 10	6,000	$          9.00	$       54,000
Jan 18	9,000	$        10.00	$       90,000
Total	24,000	$          9.00	$     216,000	14,000	$        9.000	$     126,000	10,000	$        9.000	$            90,000
Perpetual
	Purchases			Cost of Goods Sold			Ending Inventory
Date	Unit	Unit Cost	Total Cost	Unit	Unit Cost	Total Cost	Unit	Unit Cost	Total Cost
Beginning							9,000	$      8.0000	$      72,000.00
Jan 5				5,000	$        8.000	$       40,000	4,000	$      8.0000	$      32,000.00
Jan 10	6,000	$          9.00	$       54,000				10,000	$      8.6000	$      86,000.00
Jan 12				3,000	$        8.600	$       25,800	7,000	$      8.6000	$      60,200.00
Jan 18	9,000	$        10.00	$       90,000				16,000	$      9.3875	$    150,200.00
Jan 20				6,000	$        9.388	$       56,325	10,000	$      9.3875	$      93,875.00
Cost of Godos Sold				14,000		$     122,125
Ending Inventory							7,000		$            93,875