Periodic versus Perpetual Entries Chippewas Company sells one product. Presented below is information for January for Chippewas Company.

Jan. 1 Inventory                100 units at $6 each 

    4 Sale                               80 units at $8 each

 11 Purchase                     150 units at $6.50 each

 13 Sale                              120 units at $8.75 each

 20 Purchase                     160 units at $7 each

 27 Sale 100 units at $9 each

Chippewas uses the FIFO cost flow assumption. All purchases and sales are on account.

(a) Assume Chippewas 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.

(b) Compute gross profit using the periodic system.

(c) Assume Chippewas uses a perpetual system. Prepare all necessary journal entries.

(d) Compute gross profit using the perpetual system.