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Intermediate Accounting 2 - LIFO, FIFO and perpetual system

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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

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Solution Summary

The solution computes cost of inventory under LIFO, FIFO and perpetual system for Ferris company.

Solution Preview

1 - Ending Inventory = 6000*10 + 2000*9 = 78,000
Cost of Goods Sold = ...

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