Question

Ferris Company began 2018 with 4,000 units of its principal product. The cost of each unit is $7. Merchandise transactions for the month of January 2018 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:
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.

Answer 1

FIFO METHDO - PERIODICAL	COST OF GOODS AVAILABLE FOR SALE	COST OF GOODS SOLD	CLOSING STOCK
Date	Particulars	Units	Cost Per unit	Total	Units	Cost Per unit	Cost of Goods Sold	Units	Cost Per unit	Ending inventory
Jan,01	Beginning Balance	4,000	$                        7.00	$                    28,000	4,000	$           7.00	$           28,000
Jan,10	Purchases	3,000	$                        8.00	$                    24,000	2,000	$           8.00	$           16,000	1,000	$           8.00	$             8,000
Jan,18	Purchases	4,000	$                        9.00	$                    36,000				4,000	$           9.00	$           36,000
	Total Goods Available For sale	11,000		$                    88,000	6,000		$           44,000	5,000		$           44,000
LIFO METHDO - PERIODICAL	COST OF GOODS AVAILABLE FOR SALE	COST OF GOODS SOLD	CLOSING STOCK
Date	Particulars	Units	Cost Per unit	Total	Units	Cost Per unit	Cost of Goods Sold	Units	Cost Per unit	Ending inventory
Jan,01	Beginning Balance	4,000	$                        7.00	$                    28,000				4,000	$           7.00	$           28,000
Jan,10	Purchases	3,000	$                        8.00	$                    24,000	2,000	$           8.00	$           16,000	1,000	$           8.00	$             8,000
Jan,18	Purchases	4,000	$                        9.00	$                    36,000	4,000	$           9.00	$           36,000
	Total Goods Available For sale	11,000		$                    88,000	6,000		$           52,000	5,000		$           36,000
LIFO METHDO - PERPETUAL	COST OF GOODS AVAILABLE FOR SALE	COST OF GOODS SOLD	CLOSING STOCK
Date	Particulars	Units	Cost Per unit	Total	Units	Cost Per unit	Cost of Goods Sold	Units	Cost Per unit	Ending inventory
Jan,01	Beginning Balance							4,000	$           7.00	$           28,000
Jan,05	Sales				2,000	$           7.00	$           14,000	2,000	$           7.00	$           14,000
Jan,10	Purchases	3,000	$                        8.00	$                    24,000				2,000	$           7.00	$           14,000
								3,000	$           8.00	$           24,000
Jan,12	Sales				1,000	$           8.00	$             8,000	2,000	$           7.00	$           14,000
								2,000	$           8.00	$           16,000
Jan,18	Purchases	4,000	$                        9.00	$                    36,000				2,000	$           7.00	$           14,000
								2,000	$           8.00	$           16,000
								4,000	$           9.00	$           36,000
					3,000	$           9.00	$           27,000	2,000	$           7.00	$           14,000
								2,000	$           8.00	$           16,000
								1,000	$           9.00	$             9,000
	Total Goods Available For sale	7,000		$                    60,000	6,000		$           49,000	5,000		$           39,000
AVERAGE COST - PERIODICAL	COST OF GOODS AVAILABLE FOR SALE	COST OF GOODS SOLD	CLOSING STOCK
Date	Particulars	Units	Cost Per unit	Total	Units	Cost Per unit	Cost of Goods Sold	Units	Cost Per unit	Ending inventory
Jan,01	Beginning Balance	4,000	$                        7.00	$                    28,000
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