Question

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

	Purchases
Date of Purchase	Units		Unit Cost*			Total Cost
Jan. 10	5,000		$	7			$	35,000
Jan. 18	6,000			8				48,000
Totals	11,000							83,000

*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.

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

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

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

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

Calculate January's ending inventory and cost of goods sold for the month using LIFO, perpetual system.

Perpetual LIFO: Cost of Goods Available for Sale Cost of Goods Sold - January 5 Cost of Goods Sold - January 12 Cost of Goods Sold - January 20 Inventory Balance # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beg. Inventory Purchases: January 10 January 18 Total

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 Purchases: January 10 January 18 Total

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.)

	Perpetual Average Inventory on hand Cost of Goods Sold # of units Cost per unit Inventory Value # of units sold Avg.Cost per unit Cost of Goods Sold Beginning Inventory Sale - January 5 Subtotal Average Cost Purchase - January 10 Subtotal Average Cost Sale - January 12 Subtotal Average Cost Purchase - January 18 Subtotal Average Cost Sale - January 20 Total

Answer 1

Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system. FIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Ending Inventory - Periodic FIFO # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning Inventory 6000 6 36000 Purchases: 10-Jan 5000 7 35000 2000 7 14000 18-Jan 6000 8 48000 6000 8 48000 Sale : 5-Jan 3000 6 18000 12-Jan 2000 6 12000 20-Jan 1000 6 6000 3000 7 21000 Total 17000 119000 9000 57000 8000 62000 Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. LIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Ending Inventory - Periodic LIFO # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning Inventory 6000 6 36000 6000 6 36000 Purchases: 10-Jan 5000 7 35000 18-Jan 6000 8 48000 Sale : 5-Jan 3000 8 24000 12-Jan 2000 8 16000 20-Jan 1000 8 8000 3000 7 21000 2000 7 14000 Total 17000 119000 9000 69000 8000 50000 Calculate January's ending inventory and cost of goods sold for the month using LIFO, perpetual system. Perpetual LIFO: Cost of Goods Available for Sale Cost of Goods Sold - January 5 Cost of Goods Sold - January 12 Cost of Goods Sold - January 20 Inventory Balance # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beg. Inventory 6000 6 36000 Purchases: 3000 6 18000 3000 6 18000 10-Jan 5000 7 35000 3000 6 18000 5000 7 35000 2000 7 14000 3000 6 18000 3000 7 21000 18-Jan 6000 8 48000 3000 6 18000 3000 7 21000 6000 8 48000 4000 8 32000 3000 6 18000 3000 7 21000 2000 8 16000 Total 119000 18000 14000 32000 Closing Inventory 8000 units $55,000 Cost of Goods Sold $64,000 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 6000 6 36000 9000 7 63000 8000 7 56000 Purchases: 10-Jan 5000 7 35000 18-Jan 6000 8 48000 Total 17000 119000 9000 63000 56000 Average cost Per unit $119,000 = $             7 17000 Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system. Perpetual Average Inventory on hand Cost of Goods Sold # of units Cost per unit Inventory Value # of units sold Avg.Cost per unit Cost of Goods Sold Beginning Inventory 6000 6 36000 Sale - January 5 -3000 6 -18000 3000 6 18000 Subtotal Average Cost 3000 6 18000 Purchase - January 10 5000 7 35000 Subtotal Average Cost 8000 6.625 53000 Sale - January 12 -2000 6.625 -13250 2000 6.625 13250 Subtotal Average Cost 6000 6.625 39750 Purchase - January 18 6000 8 48000 Subtotal Average Cost 12000 7.3125 87750 Sale - January 20 -4000 4000 7.3125 29250 Total 8000         10.97 87750 60500