Problem:
Ferris company began 2009 with 6000 units of its principal product. The cost of each unit is $8.
Merchandise transactions for the month of January 2009 are as follows:
Date of Purchase Units Unit Cost Total Cost
10-Jan 5000 $9 45000
18-Jan 6000 10 60000
11000 $19 105000
*includes purchase price and cost of freight
8000 units were on hand at the end of each month.
Required:
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