A company began January with 6,000 units of its principal product. The cost of each unit is $8. Inventory transactions for
the month of January are as follows:
Purchases
Date of Purchase
Units
Unit Cost*
Total Cost
January 10
5,000
$9
$ 45,000
January 18
6,000
10
60,000
Totals
11,000
$ 105,000
* Includes purchase price and cost of freight.
Sales
Date of Sale
Units
January 5
3,000
January 12
2,000
January 20
4,000
Total
9,000
8,000 units were on hand at the end of the month.
Problem 8-5 (Static) 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.
Inventory on hand
Cost of Goods Sold
Perpetual Average
Number Cost per Inventory
of units
unit
Value
Number
of units
sold
Average
Cost per
unit
Cost of
Goods Sold
Beginning Inventory
6,000
8.0000 $ 48,000
Sale - January 5
(3,000) 8.0000
(24,000)
3,000 $ 8.0000 $ 24,000
Subtotal Average Cost
3,000 8.0000
24,000
Purchase - January 10
5,000
9.0000
45,000
Subtotal Average Cost
8,000
69,000
Sale - January 12
(2,000)
0
2,000 $ 0.0000 $
0
Subtotal Average Cost
6,000
69,000
Purchase - January 18
6,000 10.0000
60,000
Subtotal Average Cost
12,000
129,000
Sale - January 20
(4,000)
0
4,000 $ 0.0000
0
