Question

Metlock Company sells one product. Presented below is information for January for Metlock Company. Jan. 1 Inventory 111 units at $5 each 4 Sale 90 units at $8 each 11 Purchase 159 units at $6 each 13 Sale 130 units at $9 each 20 Purchase 149 units at $7 each 27 Sale 85 units at $11 each Metlock uses the FIFO cost flow assumption. All purchases and sales are on account.

Assume Metlock uses a perpetual system. Prepare all necessary journal entries. (If no entry is required, select "No entry" for the account titles and enter 0 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. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31
	(To record the sale)
	(To record the cost of inventory)
Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31
Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31
	(To record the sale)
	(To record the cost of inventory)
Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31
Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31
	(To record the sale)
	(To record the cost of inventory)

Answer 1

The journal entries to be booked will be as under. These are prepared basis the table given below:

Date	Account Description	Debit	Credit
Jan-04	Accounts Receivables	720
	Sales Revenue		720
Jan-04	Cost of Goods Sold	450
	Merchandize Inventory		450
Jan-11	Merchandize Inventory	954
	Accounts Payable		954
Jan-13	Accounts Receivables	1170
	Sales Revenue		1170
Jan-13	Cost of Goods Sold	759
	Merchandize Inventory		759
Jan-20	Merchandize Inventory	1043
	Accounts Payable		1043
Jan-27	Accounts Receivables	935
	Sales Revenue		935
Jan-27	Cost of Goods Sold	545
	Merchandize Inventory		545

Notes

Lets construct the below table before we prepare the journal entries

	Beginning Inventory			Purchases			Sales / COGS			Ending Inventory			Sales
Date	Units	Price	Total	Units	Price	Total	Units	Price	Total	Units	Price	Total	Units	Price	Total
Jan-01	111	5	555							111	5	555
Jan-04							90	5	450	21	5	555	90	8	720
Jan-11				159	6	954				21	5	555
										159	6	954
Jan-13							21	5	105	0	5	0	130	9	1170
							109	6	654	50	6	300
Jan-20				149	7	1043				50	6	300
										149	7	1043
Jan-27							50	6	300	0	6	0	85	11	935
							35	7	245	114	7	798
Total	111		555	308		1997	305		1754	114		798	305		2825

Please comment in case of any issue and I will be happy to help.