Fong Sai-Yuk Company sells one product. Presented below is information for January for Fong Sai-Yuk Company.\nJan. 1 Inventory 100 units at $5 each\n4 S
Fong Sai-Yuk Company sells one product. Presented below is information for January for Fong Sai-Yuk Company.
\r\nJan. 1 Inventory 100 units at $5 each
\r\n4 Sale 80 units at $8 each
\r\n11 Purchase 150 units at $6 each
\r\n13 Sale 120 units at $8.75 each
\r\n20 Purchase 160 units at $7 each
\r\n27 Sale 100 units at $9 each
\r\nFong Sai-Yuk uses the FIFO cost flow assumption. All purchases and sales are on account.
\r\nInstructions
\r\n(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.
\r\n(b) Compute gross profit using the periodic system.
\r\n(c) Assume Fong Sai-Yuk uses a perpetual system. Prepare all necessary journal entries.
\r\n(d) Compute gross profit using the perpetual system.