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.
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.
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
Problem 3AP
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Question
![Required information
[The following information applies to the questions displayed below.]
A company began January with 8,000 units of its principal product. The cost of each unit is $7. Inventory transactions for
the month of January are as follows:
Date of Purchase
January 10
January 18
Totals
Sales
Units
Date of Sale
January 5
January 12
January 20
Total
6,000
8,000
14,000
* Includes purchase price and cost of freight.
Units
Purchases
Unit Cost*
4,000
2,000
5,000
11,000
$8
9
11,000 units were on hand at the end of the month.
Total Cost
$ 48,000
72,000
$ 120,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54e8c682-be67-4ef0-bd1d-cf8b2e543b76%2Fedb4f215-60f0-4098-bbf5-f833e0734373%2Fez6unhv_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
A company began January with 8,000 units of its principal product. The cost of each unit is $7. Inventory transactions for
the month of January are as follows:
Date of Purchase
January 10
January 18
Totals
Sales
Units
Date of Sale
January 5
January 12
January 20
Total
6,000
8,000
14,000
* Includes purchase price and cost of freight.
Units
Purchases
Unit Cost*
4,000
2,000
5,000
11,000
$8
9
11,000 units were on hand at the end of the month.
Total Cost
$ 48,000
72,000
$ 120,000
Transcribed Image Text: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.
Perpetual Average
Beginning Inventory
Sale - January 5
Subtotal Average Cost
Purchase - January 10
Subtotal Average Cost
Sale - January 12
Subtotal Average Cost
Purchase - January 18
Subtotal Average Cost
Sale - January 20
Total
Inventory on hand
Number Cost per
of units
unit
0
0
0
0
Inventory
Value
$
GA
$
0
0
0
0
0
0
Number
of units
sold
Cost of Goods Sold
Average
Cost per
unit
0
Cost of
Goods Sold
$
0
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