Larkspur Company sells one product. Presented below is information for January for Larkspur Company. Jan. 1 Inventory 118 units at $5 each 4 Sale 93 units at $8 each 11 Purchase 165 units at $6 each 13 Sale 136 units at $9 each 20 Purchase 163 units at $7 each 27 Sale 104 units at $11 each Larkspur uses the FIFO cost flow assumption. All purchases and sales are on account.

1. Assume Larkspur 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 113 units.

1. a. Compute gross profit using the periodic system.

2. Assume Larkspur uses a perpetual system. Prepare all necessary journal entries.

2. a. Compute gross profit using the perpetual system.