calculations.

10 points

Normandy Company has collected the following inventory data prior to preparing financial

statements for the month of October. All purchases and sales are on credit.

Units

Unit Cost Total Cost

Sales Price

10/1

Inventory

30

$

3

S

10/6

Purchase

70

$

4

10/11

Purchase

10/16

Purchase

10/30

Purchase

5

6

7

Goods available

295

$

$

$

lu

$

90

280

225

300

700

1.595

10/12

Sale

40

10

10/20

Sale

60

S

11

Goods sold

10/31

Inventory

100

195

Assuming the periodic inventory system is used, determine the cost of the ending inventory and

cost of goods sold using FIFO.

Prepare the appropriate journal entries to record: (10 marks)

(A) The October 6 purchase.

(B) The October 12 sale.

(C) The entries to close the October income statement items to Income Summary. (Assume that

sales revenue and the elements of cost of goods sold are the only income statement items.)