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

Jan. 1		Inventory		109	units at $4 each
4		Sale		85	units at $8 each
11		Purchase		137	units at $7 each
13		Sale		109	units at $9 each
20		Purchase		151	units at $7 each
27		Sale		93	units at $11 each

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

Assume Headland 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.)

Date

Account Titles and Explanation

Debit

Credit

Jan 4

Jan11

Jan 13

Jan 20

Jan 27

Jan 31

b. Compute gross profit using the periodic system.

Gross profit: