Fong company sells one product. Presented below is information for January for Fong Company.

Jan 1 Inventory 100 units at $5 each

Jan 4 Sale 80 units at $8 each

Jan 11 Purchase 150 units at $ 6 each

Jan 20 Purchase 160 units at $7 each

Jan 27 Sale 100 units at $ 9 each

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

Instructions

a) Assume Fong company uses a periodic system. Prepare all necessary journal entries, including the end-of-the-month closing entry to record cost of goods sold. A physical count indicates that ending inventory for January is 110 units.

b) Compute gros profit using the periodic system.

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

d) Compute gross profit using the perpetual system.