Problem - Company XYZ began 2016 with 10,000 units of its principle product. The cost of each unit is $25.00. Merchandise transactions for the month of January, 2016, are as follows:
|
Purchases
|
|
Date of Purchase
|
Units
|
Unit Cost*
|
Total Cost
|
|
Jan. 4
|
8,000
|
$24.00
|
$192,000
|
|
Jan. 22
|
7,000
|
27.00
|
189,000
|
|
Totals
|
15,000
|
|
$381,000
|
**includes purchase price and cost of freight**
Sales for the month totaled 13,000 units, leaving 12,000 units 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. Average cost, periodic system