Ferris Company began 2018 with 9,000 units of its principal product. The cost of each unit is $4. Merchandise transactions for the month of January 2018 are as follows:
PurchasesDate of PurchaseUnits Unit Cost*Total CostJan. 106,000 $5 $30,000 Jan. 189,000 6 54,000 Totals15,000 84,000
*Includes purchase price and cost of freight.
SalesDate of SaleUnits Jan. 55,000 Jan. 123,000 Jan. 206,000 Total14,000
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 each of the following alternatives:
1. FIFO, periodic system.
2. LIFO, periodic system.
3. LIFO, perpetual system.
4. Average cost, periodic system.
5. Average cost, perpetual system.