Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4]

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[The following information applies to the questions displayed below.] Ferris Company began January with 6,000 units of its principal product. The cost of each unit is $7. Merchandise transactions for the month of January are as follows:

	Purchases
Date of Purchase	Units		Unit Cost*			Total Cost
Jan. 10	5,000		$	8			$	40,000
Jan. 18	6,000			9				54,000
Totals	11,000							94,000

* 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.

Problem 8-5 (Algo) Part 4

4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system.

Required information Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4] [The following information applies to the questions displayed below.] Ferris Company began January with 6,000 units of its principal product. The cost of each unit is $7 Merchandise transactions for the month of January are as follows: Purchases Unit Cost* Date of Purchase Jan. 10 Jan. 18 Units 5,000 6,000 11,000 9 Total Cost $40,000 54,000 94,000 Totals Includes purchase price and cost of freight. Sales Date of Sale Jan. 5 Jan. 12 Jan. 20 Total Units 3,000 2,000 4,000 9,000 8,000 units were on hand at the end of the month. Problem 8-5 (Algo) Part 4 4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system. Average Cost Cost of Goods Available for Sale Cost of Unit Goods # of units Cost Available for Sale 6,000 $ 7.00 $ 42,000 Cost of Goods Sold - Average Cost # of units Average Cost per Cost of sold Unit Goods Sold Ending Inventory - Average Cost # of units Average in ending Cost per Ending inventory unit Inventory Beginning Inventory Purchases: January 10 January 18 Total 5,000 $ 8.00 6,000 $ 9.00 17,000 40,000 54,000 136,000 $ $ 0 $ 0