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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
January 10
5,000
$9
Total Cost
$ 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.
4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system.
Beginning Inventory
Purchases:
6,000 $ 8.00 $ 48,000
January 10
5,000 $ 9.00 45,000
January 18
6,000 $ 10.00 60,000
Total
17,000
$ 153,000
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