During January, Wonder Foods company that uses a perpetual inventory system had beginning inventory, purchases, and sales as follows:

Detail/Activity	Units
Cost per unit	Sales price per unit
Beginning Inventory	120 @ $3,750
Jan. 04 sale	75	@ $4,000
Jan. 10 purchase	80 @ $3,550
Jan. 15 sale	25	@ $4,100
Jan. 26 sale	50	@ $4,100
Jan. 29 sale	50	@ $4,100

Required:

1. Prepare schedule to show the cost of goods sold and ending inventory using the FIFO cost flow assumption.
2. Using information from your answers in 1, journalize the following transactions.
   1. Jan 4^th - Cash sales.
   2. Jan 10^th - Purchase from Growth ltd. on terms 2/10, n30.
   3. Jan 15^th - Sales to Winds operations on terms 2/5, n20.
   4. Jan 16^th - Payment made to Growth ltd. for the purchase of the 10^th.
   5. Jan 20^th - Purchase from Visions ltd. - paid cash.
   6. Jan 26^th - Sales to Flags - 50% cash and 50% on terms 2/5, n10.
   7. Jan 29^th - Sales to Future - terms 2.5/5, n10

Answer:

Part 1:

Date	Purchases	Sales (cost)	Inventory Balance
	Beginning Inventory

Part 2:

General Journal
Trans. no.	Date	Account Titles and Explanation	Account no.	Debit	Credit