Exercise 8-9

Ivanhoe Company sells one product. Presented below is information for January for Ivanhoe Company.

Jan. 1 Inventory 116 units at $4 each 4 Sale 94 units at $8 each 11 Purchase 154 units at $6 each 13 Sale 124 units at $9 each 20 Purchase 169 units at $6 each 27 Sale 105 units at $11 each

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

Assume Ivanhoe 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 116 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.)

Date Account Titles and Explanation Debit Credit Jan. 1 Jan. 4 Jan. 11 Jan. 13 Jan. 20 Jan. 27 Jan. 31 Jan. 1 Jan. 4 Jan. 11 Jan. 13 Jan. 20 Jan. 27 Jan. 31 Jan. 1 Jan. 4 Jan. 11 Jan. 13 Jan. 20 Jan. 27 Jan. 31 Jan. 1 Jan. 4 Jan. 11 Jan. 13 Jan. 20 Jan. 27 Jan. 31 Jan. 1 Jan. 4 Jan. 11 Jan. 13 Jan. 20 Jan. 27 Jan. 31 Jan. 31

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Compute gross profit using the periodic system.

Gross profit $

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Assume Ivanhoe 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. 1 Jan. 4 Jan. 11 Jan. 13 Jan. 20 Jan. 27 Jan. 31 (To record the sale) (To record the cost of inventory) Jan. 1 Jan. 4 Jan. 11 Jan. 13 Jan. 20 Jan. 27 Jan. 31 Jan. 1 Jan. 4 Jan. 11 Jan. 13 Jan. 20 Jan. 27 Jan. 31 (To record the sale) (To record the cost of inventory) Jan. 1 Jan. 4 Jan. 11 Jan. 13 Jan. 20 Jan. 27 Jan. 31 Jan. 1 Jan. 4 Jan. 11 Jan. 13 Jan. 20 Jan. 27 Jan. 31 (To record the sale) (To record the cost of inventory)

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Compute gross profit using the perpetual system.

Gross profit $

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