In: Accounting
[The following information applies to the questions
displayed below.]
Ferris Company began January with 6,000 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 | 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:
1. Calculate January's ending inventory and cost
of goods sold for the month using FIFO, periodic system.