quired information [The following information applies to the questions displayed below.] A company began January with 8,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows: Date of Purchase Purchases Units Unit Cost*Footnote asterisk Total Cost January 10 6,000 $ 8 $ 48,000 January 18 8,000 9 72,000 Totals 14,000 $ 120,000 *Footnote asterisk Includes purchase price and cost of freight. Sales Date of Sale Units January 5 4,000 January 12 2,000 January 20 5,000 Total 11,000
quired information [The following information applies to the questions displayed below.] A company began January with 8,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows: Date of Purchase Purchases Units Unit Cost*Footnote asterisk Total Cost January 10 6,000 $ 8 $ 48,000 January 18 8,000 9 72,000 Totals 14,000 $ 120,000 *Footnote asterisk Includes purchase price and cost of freight. Sales Date of Sale Units January 5 4,000 January 12 2,000 January 20 5,000 Total 11,000
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 4BE: Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory...
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Required information
[The following information applies to the questions displayed below.]
A company began January with 8,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows:
Date of Purchase | Purchases | ||
---|---|---|---|
Units | Unit Cost*Footnote asterisk | Total Cost | |
January 10 | 6,000 | $ 8 | $ 48,000 |
January 18 | 8,000 | 9 | 72,000 |
Totals | 14,000 | $ 120,000 |
*Footnote asterisk Includes purchase price and cost of freight.
Sales | |
Date of Sale | Units |
---|---|
January 5 | 4,000 |
January 12 | 2,000 |
January 20 | 5,000 |
Total | 11,000 |
11,000 units were on hand at the end of the month.
![Cost of Goods Sold - January 20
Number
of units
sold
0
Cost per
unit
$
Cost of
Goods Sold
7.00 $
8.00
9.00
$
0
0
0
0
Inventory Balance
Number of
units in
ending
inventory
0
Cost per
unit
$
Ending
Inventory
7.00 $
8.00
9.00
$
0
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54e8c682-be67-4ef0-bd1d-cf8b2e543b76%2F0e813e0c-f7cb-42c9-ae41-ae99b864bde4%2Fmddoun_processed.png&w=3840&q=75)
Transcribed Image Text:Cost of Goods Sold - January 20
Number
of units
sold
0
Cost per
unit
$
Cost of
Goods Sold
7.00 $
8.00
9.00
$
0
0
0
0
Inventory Balance
Number of
units in
ending
inventory
0
Cost per
unit
$
Ending
Inventory
7.00 $
8.00
9.00
$
0
0
0
0
![3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.
Perpetual FIFO:
Beginning Inventory
Purchases:
January 10
January 18
Total
Cost of Goods Available for Sale
Cost of
Goods
Cost Available for
Sale
Number Unit
of units
8,000 $7.00 $
6,000
8,000
22,000
8.00
9.00
$
56,000
48,000
72,000
176,000
Cost of Goods Sold - January 5
Number
of units
sold
Cost per
unit
$
Cost of
Goods Sold
7.00 $
8.00
9.00
$
0
0
O
0
Cost of Goods Sold - January 12
Number
of units
sold
0
Cost per
unit
$
Cost of
Goods Sold
7.00 $
8.00
9.00
$
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54e8c682-be67-4ef0-bd1d-cf8b2e543b76%2F0e813e0c-f7cb-42c9-ae41-ae99b864bde4%2Fasbwlf_processed.png&w=3840&q=75)
Transcribed Image Text:3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.
Perpetual FIFO:
Beginning Inventory
Purchases:
January 10
January 18
Total
Cost of Goods Available for Sale
Cost of
Goods
Cost Available for
Sale
Number Unit
of units
8,000 $7.00 $
6,000
8,000
22,000
8.00
9.00
$
56,000
48,000
72,000
176,000
Cost of Goods Sold - January 5
Number
of units
sold
Cost per
unit
$
Cost of
Goods Sold
7.00 $
8.00
9.00
$
0
0
O
0
Cost of Goods Sold - January 12
Number
of units
sold
0
Cost per
unit
$
Cost of
Goods Sold
7.00 $
8.00
9.00
$
0
0
0
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