Required information
Skip to question
[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 $5. Merchandise transactions for the month of January are as follows:
Purchases
Date of Purchase Units Unit Cost* Total Cost
Jan. 10 5,000 $ 6 $ 30,000 Jan. 18 6,000 7 42,000 Totals 11,000 72,000 * 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.
4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system.