$!$

Required Information

Problem $8-5($Algo$)$ Varlous Inventory costing methods $[$LO$8-1,8-4]$

$[$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 $\backslash (\backslash$$ $7\backslash ).$ Inventory transactions for the month of January are as follows:

$\backslash$begin$\{$tabular$\}\{$lccr$\}$

& $\backslash$multicolumn$\{3\}\{$c$\}\{$ Purchases $\}\backslash \backslash$

$\backslash$cline $\{2-4\}$ Date of Purchase & Units & Unit Cost$*$ & Total Cost $\backslash \backslash$

January $10$ & $6,000$ & $\backslash (\backslash$$ $8\backslash )$ & $\backslash (\backslash$$ $48,000\backslash )\backslash \backslash$

January $18$ & $8,000$ & $9$ & $72,000\backslash \backslash$

$\backslash$cline $\{2-3\}$ Totals & $14,000$ & & $\backslash (\backslash$$ $120,000\backslash )\backslash \backslash$

$\backslash$hline $\backslash$hline

$\backslash$end$\{$tabular$\}$

$*$ Includes purchase price and cost of freight.

$\backslash$begin$\{$tabular$\}\{$lc$\}$

$\backslash$multicolumn$\{2\}\{$c$\}\{$ Sales $\}\backslash \backslash$

$\backslash$hline Date of Sale & Units $\backslash \backslash$

January $5$ & $4,000\backslash \backslash$

January $12$ & $2,000\backslash \backslash$

January $20$ & $5,000\backslash \backslash$

$\backslash$cline $\{2-2\}$ Total & $11,000\backslash \backslash$

$\backslash$hline $\backslash$hline

$\backslash$end$\{$tabular$\}$

$11,000$ units were on hand at the end of the month.

Problem $8-5($Algo$)$ Part $1$

Required:

$1.$ Calculate January's ending inventory and cost of goods sold for the month using FIFO, periodic system.

Answer is not complete.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline & $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Cost of Goods Available for Sale$\}$ & $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Cost of Goods Sold $-$ Periodic FIFO$\}$ & $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Ending Inventory $-$ Periodic FIFO$\}\backslash \backslash$

$\backslash$hline FIFO & Number of units & Cost per unit & Cost of Goods Available for Sale & Number of units sold & Cost per unit & Cost of Goods Sold & Number of units in ending inventory & Cost per unit & Ending Inventory $\backslash \backslash$

$\backslash$hline Beginning Inventory & $8,000$ & $\backslash$$$7\mathrm{.}00$ & $\backslash$$ $56,000$ & & $\backslash (\backslash$$ $7\mathrm{.}00\backslash )$ & $\backslash$$ $0$ & $2,000$ & $\backslash$$ $7\mathrm{.}00$ & $\backslash$$ $14,000\backslash \backslash$

$\backslash$hline Purchases: & $\backslash$multicolumn$\{9\}\{|$l$|\}\{\}\backslash \backslash$

$\backslash$hline January $10$ & $6,000$ & $\backslash (\backslash$$ $8\mathrm{.}00\backslash )$ & $48,000$ & & $\backslash$$ $8\mathrm{.}00$ & $0$ & $3,000$ & $\backslash$$ $8\mathrm{.}00$ & $24,000\backslash \backslash$

$\backslash$hline January $18$ & $8,000$ & $\backslash (\backslash$$ $9\mathrm{.}00\backslash )$ & $72,000$ & $4,000$ & $\backslash$$ $9\mathrm{.}00$ & $36,000$ & $5,000\backslash (\backslash$times $\backslash )$ & $\backslash$$ $9\mathrm{.}00$ & $45,000\backslash \backslash$

$\backslash$hline Total & $22,000$ & & $\backslash$$ $176,000$ & $4,000$ & & $\backslash$$ $36,000$ & $10,000$ & & $\backslash$$ $83,000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$