(Periodic versus Perpetual Entries) Fong Sai-Yuk Company sells one product. Presented below is information for January for Fong Sai-Yuk Company.

Jan 1

Inventory

100

units at

$5.00

each

Jan 4

Sale

80

units at

$8.00

each

Jan 11

Purchase

150

units at

$6.00

each

Jan 13

Sale

120

units at

$8.75

each

Jan 20

Purchase

160

units at

$7.00

each

Jan 27

Sale

100

units at

$9.00

each

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

Instructions:

(a) Assume Fong Sai-Yuk 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.

Jan 4

Account Title

Amount

Account Title

Amount

Jan 11

Account Title

Amount

Account Title

Amount

Jan 13

Account Title

Amount

Account Title

Amount

Jan 20

Account Title

Amount

Account Title

Amount

Jan 27

Account Title

Amount

Account Title

Amount

Jan 31

Text Title

Amount

Text Title

Amount

Text Title

Amount

Text Title

Amount

(b) Compute the gross profit using the periodic system.

Text Title

Amount

Text Title

Amount

Text Title

Formula

(c) Assume Fong Sai-Yuk uses a perpetual system. Prepare all necessary journal entries.

Jan 4

Account Title

Amount

Account Title

Amount

Account Title

Amount

Account Title

Amount

Jan 11

Account Title

Amount

Account Title

Amount

Jan 13

Account Title

Amount

Account Title

Amount

Account Title

Amount

Account Title

Amount

Jan 20

Account Title

Amount

Account Title

Amount

Jan 27

Account Title

Amount

Account Title

Amount

Account Title

Amount

Account Title

Amount

(d) Compute the gross profit using the perpetual system.

Text Title

Amount

Text Title

Amount

Text Title

Formula