Answer:
The cost of goods sold and endings inventory are both given below in explanation according to the information given.
Explanation:
Ferris Company began at 2018 with 6,000 units of its principal product. The cost of each unit is $8.
Beginning inventory = 6000*8 = $48000
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
Cost of goods available for sale = 17000 units for $153000
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
Cost of goods sold = 6000*8 + 3000*9= $75,000
Ending Inventory = 2000*9 + 6000*10= $78,000
2) LIFO (last-in, first-out) Periodic system.
Cost of goods sold = 6000*10 + 3000*9= $87,000
Ending Inventory = 6000*8 + 2000*9= $66,000
3) LIFO, Perpetual system.
Cost of goods sold = 3,000*8 + 2,000*9 + 4,000*10= $82,000
Ending Inventory = 3,000*8 + 3,000*9 + 2,000*10= $71,000
4) Average cost, Periodic system.
Weighted average unit cost = $153000/17000 (units) = $9
Cost of goods sold = 9,000*$9 = $81,000
Ending Inventory = 8,000*9 = $72,000
Alternately, the cost of goods sold can also be calculated by multiplying total units by average price thus = 8000*$9 = $72000
5) Average cost, perpetual system
.
Cost of goods sold = 3,000*8 + 2,000*8.5 + 4,000*9 = $77,000
Ending Inventory = 8,000*9 = $72,000
