Ferris company began 2018 with 7,000 units of its principal product. the cost of each unit is $6. merchandise transactions for the month of january 2018 are as follows: purchases date of purchase units unit cost* total cost jan. 10 6,000 $ 7 $ 42,000 jan. 18 7,000 8 56,000 totals 13,000 98,000 *includes purchase price and cost of freight. sales date of sale units jan. 5 3,000 jan. 12 1,000 jan. 20 4,000 total 8,000 12,000 units were on hand at the end of the 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. 4. average cost, periodic system. 5. average cost, perpetual system.

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?