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Ferris Company began 2011 with 6,000 units of its...

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Ferris Company began 2011 with 6,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January 2011 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: Calculate January's ending inventory and cost of goods sold for the month using each of the following alternatives (Omit the "$" sign in your response): Alternative Ending Inventory Cost of Goods Sold 1. FIFO, periodic system $ $ 2. LIFO, periodic system $ $ 3. LIFO, perpetual system $ $ 4. Average cost, periodic system $ $ 5. Average cost, perpetual system $ $ -------------------------------------------------------------------------------- Check My WorkReferences Worksheet Learning Objective: 08-01 Explain the difference between a perpetual inventory system and a periodic inventory system. Learning Objective: 08-04 Differentiate between the specific identification, FIFO, LIFO, and average cost methods used to determine the cost of ending inventory and cost of goods sold.

 

Paper#7665 | Written in 18-Jul-2015

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