Question

Metlock Company sells one product. Presented below is information for January for Metlock Company. Jan. 1 Inventory 4 Sale 11 Purchase 13 Sale 20 Purchase 27 Sale 110 units at $5 each 87 units at $8 each 156 units at $6 each 126 units at $9 each 155 units at $6 each 99 units at $10 each Metlock uses the FIFO cost flow assumption. All purchases and sales are on account. Assume Metlock 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 109 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 696 Sales Revenue 696 Jan. 11 Inventory 936 Accounts Payable 936 Jan. 13 Accounts Receivable 1134 Sales Revenue 1134

Answer 1

value of closing Fouventory. (10 = $654 . closing Inventory should be accertained from the most recent Purchase Calculation of COGS cost cast fruits on 1 Jan 110885 550 Add cost of units purchased during the years 11 Jan 156 * $6 20 Jan 155 x $6 936 930 2416 654 $1762 E closing Inventory. . Cost of Goods Sold. value of sales ($) 4 Jan 8788=696 13 n 126 8 9= 1134 27 99x10 = 990 Sales. $2820 to Gross Profit = Sales - COGS =$2820 - 1762) = $1058

o ****-ed generat Calculation of closing stock unders FIFO perpetual Irrentory. Balance Receipt Issue. 110-$5-$550 87 - $3-$435 23-$5 - $115 156 $6-936 23-$5-$115 156 - $6.935 23- $5 - $115 53-6-318 20 155 - $6-930 27 208-$6-12:48 99-$6 – 594 109 - $6-654 in Cost of Goods sold ($435 $115 + $618 + $594) t =$1762 Salla 4 Jan 878 2896 13 1 126x9 = 1134 27 99%10 = 990 $2820 c. Gross Profit - Sales - COGS = $(2820 - 1762) = $1058