Question

Ferris Company began 2018 with 5,000 units of its principal product. The cost of each unit is $9. Merchandise transactions for the month of January 2018 are as follows: Purchases Date of Purchase Units Unit Cost* Total Cost Jan. 10 6,000 $ 10 $ 60,000 Jan. 18 5,000 11 55,000 Totals 11,000 115,000 *Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 3,000 Jan. 12 3,000 Jan. 20 4,000 Total 10,000 6,000 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.

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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 5,000 $9.00 $45,000 5,000 $9.00 $45,000 $9.00 $0 Purchases: January 10 6,000 $10.00 60,000 $10.00 0 $10.00 0 January 18 5,000 $11.00 55,000 $11.00 0 $11.00 0 Total 16,000 $160,000 5,000 $45,000 0 $0

Answer 1

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
Balance	5000	9	45000	5000	9	45000
Purchasse
10-Jan	6000	10	60000	5000	10	50000	1000	10	10000
18-Jan	5000	11	55000				5000	11	55000
TOTAL	16000		160000	10000		95000	6000		65000
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
Balance	5000	9	45000				5000	9	45000
Purchasse
10-Jan	6000	10	60000	5000	10	50000	1000	10	10000
18-Jan	5000	11	55000	5000	11	55000
TOTAL	16000		160000	10000		105000	6000		55000
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Jan							5000	9	45000
5-Jan				3000	9	27000	2000	9	18000
10-Jan	6000	10	60000				2000	9	18000
							6000	10	60000
12-Jan				3000	10	30000	2000	9	18000
							3000	10	30000
18-Jan	5000	11	55000				2000	9	18000
							3000	10	30000
							5000	11	55000
20-Jan				4000	11	44000	2000	9	18000
							3000	10	30000
							1000	11	11000
TOTAL	11000		115000	10000		101000	6000		59000
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
Balance	5000	9	45000
Purchasse
10-Jan	6000	10	60000
18-Jan	5000	11	55000
TOTAL	16000	10	160000	10000	10	100000	6000	10	60000
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL WEIGHTED AVERAGE METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Jan							5000	9	45000
5-Jan				3000	9	27000	2000	9	18000
10-Jan	6000	10	60000				2000	9	18000
							6000	10	60000
Average							8000	9.75	78000
12-Jan				3000	9.75	29250	5000	9.75	48750
18-Jan	5000	11	55000				5000	9.75	48750
							5000	11	55000
Average							10000	10.375	103750
20-Jan				4000	10.375	41500	6000	10.375	62250
TOTAL	11000		115000	10000		97750	6000		62250