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Required information
Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4]
[The following information applies to the questions displayed below.]
A company began January with 7,000 units of its principal product. The cost of each unit is $6. Inventory transad
the month of January are as follows:
Includes purchase price and cost of freight.
12,000 units were on hand at the end of the month.
Problem 8-5 (Algo) Part 5
Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system.
Note: Round average cost per unit to 4 decimal places. Enter sales with a negative sign.
Answer is complete but not entirely correct.
Required information
Problem 8-5(Algo)Various inventory costing methods[LO8-1,8-4]
[The following information applies to the questions displayed below.]
A company began January with 7,000 units of its principal product.The cost of each unit is $6. Inventory transa the month of January are as follows:
Date of Purchase
Purchases Unit Cost* $7 8
Units 6,000 7,000 13,000
Total Cost $42,000 56,000 $98,000
January 10 January 18 Totals
*Includes purchase price and cost of freight
Sales Date of Sale January 5 January 12 January 20 Total
Units 3,000 1,000 4,000 8,000
12,000 units were on hand at the end of the month
Problem 8-5(Algo)Part 5
5.Calculate January's ending inventory and cost of goods sold for the month using Average cost,perpetual system Note:Round average cost per unit to 4 decimal places.Enter sales with a negative sign.
x Answer is complete but not entirely correct
Inventory on hand Cost Number Inventory per of units Value unit 7,000 6.0000 IS 42,000 (3,000 6.0000 (18,000) 4,000 6.0000 24,000 6,000 7.0000 42,000
Cost of Goods Sold Number Average Cost of of units Cost per Goods sold unit Sold
Perpetual Average
Beginning Inventory
Sale-January 5
3,000
$6.0000
$ 18,000
Subtotal Average Cost Purchase -January 10 Subtotal Average Cost Sale - January 12 Subtotal Average Cost Purchase - January 18 Subtotal Average Cost Sale - January 20
10,000 6.5882 66,000 1,000 6.5882 (6,588) 9,000 6.5882 59,412 7,000 8.0000 56,000 16,000 7.2727 115,412 (4,000 7.2727 x (29,091) 12,000 S 86,321
1,000
6.5882
6,588
4,000 8,000
$7.2727
29,091 $ 53,679
