Question

Current Attempt in Progress Oriole Company sells one product. Presented below is information for January for Oriole Company Jan. 1 Inventory 120 units at $5 each 4 Sale 96 units at $8 each 11 Purchase 141 units at $7 each 13 Sale 113 units at $9 each 20 Purchase 160 units at $ each 27 Sale 104 units at $11 each Oriole uses the FIFO cost flow assumption. All purchases and sales are on account. Assume Oriole 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 108 units. (If no entry is required, select "No entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 4 - Accounts Receivable 768

Answer 1

Under Periodic System Date Account Title and Explanation Deo bre Jan. 4 Accounts Receivable Sales Revenue 768 Jan. 11 Purchases Accounts Payable 1017 Jan. 13 Accounts Receivable Sales Revenue 1017 Jan. 20 P urchases Accounts Payable Accounts Receivable Sales Revenue 14 Jan 31 19 LALO Inventory (108*7) (Ending Inventory) Cost of Goods Sold (Balancing Figure) Purchases (987+1120) Inventory (120*5) (Beginning Inventory) 600 Gross Profit = Sales – Cost of Goods Sold = (768+1017+1144) – 1951 = $978

Under Perpetual System Date Account Title and Explanation Debit Credit Jan. 4 Accounts Receivable Sales Revenue 768 1 768 Cost of goods sold Merchandise Inventory | 480 1. 11 Merchandise Inventory Accounts Payable 987 987 Jan. 13 | Accounts Receivable Sales Revenue A 1017 LES 1 017 | Cost of goods sold Merchandise Inventory 743 743 En Merchandise Inventory Accounts Payable 1120 Jan. 27 Accounts Receivable Sales Revenue 728 Cost of goods sold Merchandise Inventory 28 Gross Profit - Sales - Cost of Goods Sold (768+1017+1144) - 1951 = $978
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Date Goods Purchased Beginning Balance Cost of Goods Sold 96 units $5 = $4801 141 units * S7 = $987 Balance Inventory 120 units $5 - $600 24 units # $5 = $120 its $5 = $120 241 units 57 = 5987 52 units * $7= $364 Jan. 13 24 Units $5=9120 US $6 Jan. 20 | 160 units - S7 = $1120 sa units i $7 = $364 150 unitsiid $7= $1120 0103 units i S7 = $756 Jan. 27 $264| S196