Question

Pina Company sells one product. Presented below is information for January for Pina Company. Jan. 1 4 11 13 20 27 Inventory Sale Purchase Sale Purchase Sale 123 units at $5 each 98 units at $8 each 136 units at $6 each 103 units at $9 each 169 units at $7 each 108 units at $11 each Pina uses the FIFO cost flow assumption. All purchases and sales are on account.

Answer 1

Journal Entry Answer General Journal Debit Credit Date $784 Jan. 4 Accounts Receivable $784 Sales Revenue (98 units x $8) (To record the Sale) Purchases (136 units x $6) $816 Jan. 11 Accounts Payable (To record the Purchases) $816 Accounts Receivable $927 Jan. 13 Sales Revenue (103 units x $9) $927 (To record the Sale) Jan. 20 Purchases (169 units x $7) $1,183 Accounts Payable $1,183 (To record the Purchases) Accounts Receivable $1,188 Jan. 27 Sales Revenue (108 units x $11) $1,188 (To record the Sale) Inventory (119 units x $7) $833 Jan. 31 Cost of Goods Sold $1,781 Purchases ($816+$1,183) $1,999 Inventory (123 units x $5) $615 (To record the Cost of goods sold)

ExplanationsCalculation of Closing Inventory Opening Inventory Cost of Goods Sold Opening Balance Purchases - Closing Inventory Jan. 1 123 Sale = $615 +$816 + $1,183 - $833 Jan. 4 98 Balance $1,781 25 Jan. 11 Purchase 136 Balance 161 Sale Jan. 13 103 Balance 58 Purchase Jan. 20 169 Balance 227 Sale 108 Jan. 27 closing Inventory 119