(Periodic versus Perpetual Entries) Fong Sai-Yuk Company sells one product. Presented below is information for January for Fong Sai-Yuk Company.
Jan 1 Inventory 100 units at $5.00 each
Jan 4 Sale 80 units at $8.00 each
Jan 11 Purchase 150 units at $6.00 each
Jan 13 Sale 120 units at $8.75 each
Jan 20 Purchase 160 units at $7.00 each
Jan 27 Sale 100 units at $9.00 each
Fong Sai-Yuk uses the FIFO cost flow assumption. All purchases and sales are on account.
Instructions:
(a) Assume Fong Sai-Yuk 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 110 units.
Jan 4 Account Title Amount
Account Title Amount
Jan 11 Account Title Amount
Account Title Amount
Jan 13 Account Title Amount
Account Title Amount
Jan 20 Account Title Amount
Account Title Amount
Jan 27 Account Title Amount
Account Title Amount
Jan 31 Text Title Amount
Text Title
Amount
Text Title Amount
Text Title Amount
(b) Compute the gross profit using the periodic system.
Text Title Amount
Text Title Amount
Text Title Formula
(c) Assume Fong Sai-Yuk uses a perpetual system. Prepare all necessary journal entries.
Jan 4 Account Title Amount
Account Title Amount
Account Title Amount
Account Title Amount
Jan 11 Account Title Amount
Account Title Amount
Jan 13 Account Title Amount
Account Title Amount
Account Title Amount
Account Title Amount
Jan 20 Account Title Amount
Account Title Amount
Jan 27 Account Title Amount
Account Title Amount
Account Title Amount
Account Title Amount
(d) Compute the gross profit using the perpetual system.
Text Title Amount
Text Title Amount
Text Title