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 9,000 units of its principal product. The cost of each unit is $5. Merchandise transactions for the month of January are as follows: Date of Purchase Jan. 10 Jan. 18 Totals Purchases Units Unit Cost* 6,000 $ 6 Total Cost $36,000 9,000 7 15,000 63,000 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. 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. Ending Inventory - Average Cost Cost of Goods Available for Sale Cost of Goods Sold - Average Cost Average Cost # of units Unit Cost Cost of Goods Available for # of units sold Average Cost per Unit Cost of Goods Sold Sale # of units in ending inventory Average Cost per unit Ending Inventory Beginning Inventory Purchases: 9,000 $ 5.00 $ 45,000 January 10 January 18 6,000 $6.00 36,000 Total 9,000 24,000 $ 7.00 63,000 $ 144,000 [The following information applies to the questions displayed below.] 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: Date of Purchase Jan. 10 Jan. 18 Totals Purchases Units Unit Cost* 6,000 $ 6 Total Cost $36,000 9,000 7 63,000 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. Problem 8-5 (Algo) Part 5 5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system. (Round average cost per unit to 4 decimal places. Enter sales with a negative sign.) Inventory on hand Perpetual Average # of units Cost per unit Inventory Value # of units sold Cost of Goods Sold Avg.Cost per unit Cost of Goods Sold Beginning Inventory Sale - January 5 Subtotal Average Cost Purchase - January 10 Subtotal Average Cost Sale - January 12 Subtotal Average Cost Purchase - January 18 Subtotal Average Cost Sale - January 20 Total