Question: Fong Sai-Yuk firm sells one product. Given below is information for January for Fong Sai-Yuk firm.
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Jan.
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1 Inventory
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100 units at $5 each
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4 Sale
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80 units at $8 each
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11 Purchase
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150 units at $6 each
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13 Sale
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120 units at $8.75 each
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20 Purchase
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160 units at $7 each
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27 Sale
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100 units at $9 each
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Fong Sai-Yuk uses the FIFO cost flow assumption. All buys and sales are on account.
Instructions;
[A] Suppose Fong Sai-Yuk uses periodic system. Make all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that ending inventory for January is 110 units.
[B] Calculate gross profit using the periodic system.
[C] Suppose Fong Sai-Yuk uses a perpetual system. Make all necessary journal entries.
[D] Calculate gross profit using perpetual system.