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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, periodic system.
Cost of Goods Available for Sale Cost of Goods Sold – Average Cost Ending Inventory – Average Cost
Average Cost # of units Unit Cost of # of units Average Cost of # of units Average Ending
Cost Goods sold Cost per Goods Sold in ending Cost per Inventory
Available for Unit inventory unit
Sale
Beginning inventory 9,000 $5.00 $45,000
Purchases:
January 10 6,000 6.00 36,000
January 18 9,000 7.00 63,000
Total 24,000 $144,000 _______ ___ ________ ________ _______
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