The cost of good sold will be $73,000 and the inventory will be $89,000.
<h3>How to compute the value?</h3>
Ferris Company began January with 7,000 units of its principal product. The cost of each unit is $8.
Merchandise transactions for January are as follows:
Jan. 10: 4,000 units at $ 9= $ 36,000
Jan. 18: 7,000 units at $10= 70,000
Totals: 11,000 units for 106,000
Sales:
Jan. 5: 3,000
Jan. 12: 1,000
Jan. 20: 4,000
Total: 8,000
The cost of good soldd will be:
= 3,000*8 + 1,000*9 + 4,000*10
= $73,000
Inventory will be
= 4,000*8 + 3,000*9 + 3,000*10
= $89,000
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Complete question
Ferris Company began January with 7,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows: Purchases Date of Purchase Units Unit Cost* Total Cost Jan. 10 4,000 $ 9 $ 36,000 Jan. 18 7,000 10 70,000 Totals 11,000 106,000 * Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 3,000 Jan. 12 1,000 Jan. 20 4,000 Total 8,000 10,000 units were on hand at the end of the month.Calculate January's ending inventory and cost of goods sold for the month using perpetual system.
