Question

Ferris Company began 2018 with 6,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January 2018 are as follows:

PLEASE FIX AND COMPLETE THE ANSWER IS NOT COMPLETE AND NOT CORRECT

	Purchases
Date of Purchase	Units		Unit Cost*			Total Cost
Jan. 10	5,000		$	9			$	45,000
Jan. 18	6,000			10				60,000
Totals	11,000							105,000

* Includes purchase price and cost of freight.

Sales
Date of Sale	Units
Jan. 5	3,000
Jan. 12	2,000
Jan. 20	4,000
Total	9,000

8,000 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.
  

Complete this question by entering your answers in the tabs below. Required 2 Required 4 Required 1 Required 3 Required 5 Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system Cost of Goods Available for Cost of Goods Sold - Periodic Ending Inventory -Periodic LIFO Sale LIFO Cost of Goods Available for Sale # of units in ending inventory Cost LIFO Cost of Goods Sold #of units sold #of units Cost Cost Ending Inventory per unit per unit per unit Beginning Inventory Purchases: January 10 January 18 $0.00 6,000 0 $ 0.00 0.00 0 2,000 S0.00 $0.00 0 x$ 0xS 0.00 0 0.00 0 $ 8,000 0 $ 0.00 0 0.00 0 16,000 C 0 Total A Required 1 Required 5 Required 2 Required 3 Required 4 Calculate January's ending inventory and cost of goods sold for the month using LIFO, perpetual system. Cost of Goods Available for Sale Cost of Goods Sold - January 5 Cost of Goods Sold - January 12 Cost of Goods Sold - January 20 Perpetual LIFO: Cost of Goods Available for Sale Cost #of units sold Cost of s Seld #of Cost of of Cost Cost of # of units Cost Cost Goods Goods units sold per unit per unit units sold per unit per unit Sold Sold Beg Inventory Purchases: 0 0.00 $0.00 S $ $ 0S 0 0.00 0 0 0 0.00 0 5,000 9.00 6,000 10.00 18,000 January 10 45,000 2,000 9.00 8,000 9.00 72,000 8,625 9.00 77,625 January 18 60,000 4,000 10.00 40,000 12,000 10.00 120,000 93,125 10.00 931 250 11,000 $192,000 $ 58,000 $ 105,000 6.000 20,000 101,750 Total 1,008,875 Doauirod 2 Doauirod Inventory Balance Cost of Goods Sold January 20 #of units in ending inventory of units sold Cost Cost of Goods Sold Cost Ending Inventory per unit per unit $ 0.00 C 0 0.00 0 8,625 9.00 77,625 6,000 9.00 54,000 93,125 10.00 931,250 931,250 10.00 9,312,500 101,750 937,250 1,008,875 9,366,500 Required 1 Required 5 Required 2 Required 3 Required 4 Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system. Cost of Goods Available for Sale Cost of Goods Sold - Average Cost Ending Inventory -Average Cost Cost of Goods Available for Sale Average # of units in ending inventory Average Cost #of units sold Cost of Goods Sold Average Cost per unit #of Unit Ending Inventory Cost units Cost per Unit Beginning Inventory 6,000 $8.00 48,000 Purchases: 5,000 $9.00 January 10 45,000 6,000 10.00 January 18 60,000 $ 153,000 0 S 0.00 $ 0 0 17,000 0 0.00 0 Total Required 1 Required 2 Required 3 Required 4 Required 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.) Inventory on hand Cost of Goods Sold Perpetual Average Cost # of units sold Cost of Goods Sold Avg.Cost per unit Inventory Value #of per unit units Beginning Inventory Sale - January 5 Subtotal Average 0.0000 0 00.0000 0 0.0000 C 0 Cost Purchase - January 0.0000 0 10 Subtotal Average 0.0000 0 Cost Sale January 12 Subtotal Average 0.0000 0 0.0000 0 Cost Purchase January 0 x 0.0000 18 Subtotal Average Cost 0.0000 0 0 Sale January 20 0 0.0000 Total 0.0000 0 0 Required 4 Required 5

Answer 1

Required 1) Ending Inventory Cost of goods available for sale Cost of Goods Sold Periodic FIFO Periodic FlIFO FIFO Cost per #of Units unit Cost of goods Cost per Cost of goods# of units in sold Cost per Ending Inventory available for sale #of Units unit [B 6,000 $ ending Inventory unit [A-B] [A] Beginning Inventory 6,000 $ 8 $ 8 $ 8 $ 48,000 48,000 Purchases: 5,000 $ 6,000 $ 3,000 $ 9 $ 2,000 $ 6,000 $ 9 $ January 10 January 18 9 45,000 27,000 18,000 10 S 10 60,000 10 60,000 $ $ $ Total 75,000 17,000 153,000 9,000 8,000 78,000 Note: Under FIFO Method goods bought first should be sold first Required 2) Cost of Goods Sold Cost of goods available for sale Periodic LIFO Ending Inventory - Periodic LIFO LIFO Cost per #of Units unit Cost per Cost of goods# of units in sold Cost per Ending Inventory Cost of goods available for sale #of Units unit ending Inventory unit [A-B 6,000 $ [A] [B] Beginning Inventory 6,000 $ 8 $ 8 $ 8 $ $ 48,000 48,000 Purchases: 5,000 $ 6,000 $ 3,000 $ 6,000 $ 2,000 $ 9 $ $ January 10 27,000 18,000 9 45,000 9 10 $ 10 S January 18 10 60,000 60,000 $ $ $ Total 153,000 17,000 9,000 87,000 8,000 66,000 Note: Under LIFO Method Latest bought goods should be sold first on

Required 3) January 20 Ending Inventory - Periodic LIFO Cost of Goods Sold- January 5 Cost of Goods Sold - January 12 Cost of goods available for sale Cost of Goods Sold # of units Perpetual LIFO: Cost per Cost of goods sold Cost per # of Units unit Cost of goods available for sale in ending Cost per Ending Inventory Cost per Cost of Cost per Cost of #of Units unit goods sold Inventory unit [A-B-C-D] #of Units # of Units unit unit goods sold [A [D Гв1 [C] Beginning Inventory 3.000 $ 8 S 8 24,000 8 S 8 S 8 $ 3.000 6.000 48,000 24,000 S Purchases: 2,000 $ 3,000 $ 2,000 $ January 10 5.000 $ 45.000 9 18,000 27,000 4.000 $ 6,000 $ January 18 10 60.000 10 10 10 40.000 10 20,000 Total $71,000 17,000 153.000 3.000 24,000 18.000 4,000 40,000 8.000 2,000 Required 4) Cost of Goods Sold- Average Cost Ending Inventory-Average Cost Cost of goods available for sale Average Cost Cost per Ending Inventory Cost of goods available for sale Cost per Cost of goods sold Cost per # of Units unit # of units in #of Units unit ending Inventory unit B] [А-B] [A] 6.000 $ Beginning Inventory Purchases: 8 S 48,000 January 10 5,000 $ 9 45.000 6,000 $ January 18 10 60,000 9,000 $ Total 17.000 72,000 153,000 81,000 8,000 Avergae Cost per unit ($153,000/17,000) $ 9.00

Required 5) Inventory on Hand Cost of goods available for sale Cost of Goods Sold Cost per Average Cost Cost per Cost of goods # of Units unit #of Units unit sold 6,000 8.0000 $ Beginning Inventory 48,000 Sale January 5 3,000 $8.0000 (3,000) 8.0000 (24,000) 24,000 Subtotal Average cost 3,000 8.0000 $ 24,000 Purchase January 10 5,000 9.0000 45,000 8,000 $8.6250 Subtotal Average cost 69,000 (2,000) 8.6250 2,000 $8.6250 Sale January 12 (17,250) 17,250 Subtotal Average cost 6,000 8.6250 6,000 $10.0000 51,750 Purchase January 18 60,000 Subtotal Average cost 12,000 $9.3125 111,750 (4,000) 9.3125 4,000 $9.3125 Sale January 20 (37,250) 37,250 8,000 9.3125 Total 74,500 9,000 78,500 Note: Subtotal Average Cost Cost of goods available for sale/#of Units