Question
Crane Company sells one product. Presented below is information for January for Crane Company. Jan. 1 Inventory 101 units at $4 each 4 Sale 80
Crane Company sells one product. Presented below is information for January for Crane Company.
Jan. 1 | Inventory | 101 | units at $4 each | ||
4 | Sale | 80 | units at $8 each | ||
11 | Purchase | 144 | units at $6 each | ||
13 | Sale | 111 | units at $9 each | ||
20 | Purchase | 156 | units at $7 each | ||
27 | Sale | 100 | units at $11 each |
Crane uses the FIFO cost flow assumption. All purchases and sales are on account.
Assume Crane 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. (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.)
******** For the journal entry on January 31st, explain how you get :
Inventory 770
COGS 1590
Inventory 404
Purchases 1956
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