Question: please demonstrate how to solve by hand and show all steps! thank you :) 440 SECTION 2 P 8-5 Various inventory costing methods LO8-1, LO8-4
440 SECTION 2 P 8-5 Various inventory costing methods LO8-1, LO8-4 Assets Ferris Company began January with 6,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows: Purchases Unit Cost Total Cost Date of Purchase Jan. 10 Jan. 18 Units 5,000 6,000 $ 45,000 60,000 $ 105,000 Total purchases 11,000 "Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 Jan. 12 Jan. 20 Total sales 3,000 2,000 4,000 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: 1. FIFO, periodic system 2. LIFO, periodic system 3. FIFO, perpetual system 4. Average cost, periodic system 5. Average cost, perpetual system 6. LIFO Perpetual
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