Buffalo Company sells one product. Presented below is information for January for Buffalo Company.
| Jan. 1 |
Inventory |
125 |
units at $4 each |
| 4 |
Sale |
104 |
units at $8 each |
| 11 |
Purchase |
158 |
units at $6 each |
| 13 |
Sale |
130 |
units at $9 each |
| 20 |
Purchase |
149 |
units at $6 each |
| 27 |
Sale |
87 |
units at $11 each |
Buffalo uses the FIFO cost flow assumption. All purchases and sales are on account.
(a) Assume Buffalo uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 111 units.