In: Accounting
Ferris Company began January with 9,000 units of its principal product. The cost of each unit is $5. Merchandise transactions for the month of January are as follows:
Purchases | |||
Date of Purchase | Units | Unit Cost. | Total Cost |
Jan. 10 | 6,000 | $6 | $36,000 |
Jan. 18 | 9,000 | 7 | 63,000 |
Totals | 15,000 | 99,000 |
Includes purchase price and cost of freight
Sales | |
Date of Sale | Units |
Jan. 5 | 5,000 |
Jan. 12 | 3,000 |
Jan. 20 | 6,000 |
Total | 14,000 |
10,000 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.