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Ferris Company began January with 7,000 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	6,000		$	8			$	48,000
Jan. 18	7,000			9				63,000
Totals	13,000							111,000

* Includes purchase price and cost of freight.

Sales
Date of Sale	Units
Jan. 5	3,000
Jan. 12	1,000
Jan. 20	4,000
Total	8,000

12,000 units were on hand at the end of the month.

. 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

Ans.	Weighted Average (Perpetual)
	Purchase				Cost of goods sold			Balance
	Date	Quantity	Rate	Total cost	Quantity	Rate	Total cost	Quantity	Rate	Total cost
	1-Jan	7000	$7.00	$49,000				7000	$7.0000	$49,000
	5-Jan				-3000	$7.0000	-$21,000	4000	$7.0000	$28,000
	10-Jan	6000	$8.00	$48,000				10000	$7.6000	$76,000
	12-Jan				-1000	$7.6000	-$7,600	9000	$7.6000	$68,400
	18-Jan	7000	$9.00	$63,000				16000	$8.2125	$131,400
	20-Jan				-4000	$8.2125	-$32,850	12000	$8.2125	$98,550
	Total				Cost of goods sold		-$61,450	Cost of Ending inventory		$98,550
	*Weighted average rate is calculated by using the formula of (Total available balance / Total units available).