Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Ferris Company began 2018 with 6,000 units of its principal product. The cost of each unit is $8.
Purchases
Jan. 10: 5,000 units at $9= $45,000
Jan. 18: 6,000 units at $10= $60,000
Totals= 11,000 units for $105,000
Sales:
Jan. 5: 3,000 units
Jan. 12: 2,000 units
Jan. 20: 4,000 units
Total= 9,000 units
8,000 units were on hand at the end of the month.
1) FIFO (first-in, first-out) Periodic system
COGS= 6000*8 + 3000*9= $75,000
Inventory= 2000*9 + 6000*10= $78,000
2) LIFO (last-in, first-out) Periodic system.
COGS= 6000*10 + 3000*9= $87,000
Inventory= 6000*8 + 2000*9= $66,000
3) LIFO, Perpetual system.
COGS= 3,000*8 + 2,000*9 + 4,000*10= $82,000
Inventory= 3,000*8 + 3,000*9 + 2,000*10= $71,000
4) Weighted average; Periodic system.
Price= (8+9+10)/3= 9
COGS= 9,000*9= $81,000
Inventory= 8,000*9= $72,000
5) Weighted average, perpetual system
COGS= 3,000*8 + 2,000*8.5 + 4,000*9= $77,000
Inventory= 8,000*9= $72,000
