Question Three: Direct Applying:

Journal Entries (8 items) are worth 24 marks/ 3 marks per entry Other items are worth 2 marks per item total question marks is 30 marks

Date		Units	Unit Cost	Total Cost	Sales Price
10/1	Inventory	30	$3	$90
10/6	Purchase (On Account)	70	$4	$280
10/11	Purchase (On Account)	45	$5	$225
10/16	Purchase (Cash)	50	$6	$300
10/30	Purchase (Cash)	100	$7	$700
10/12	Sales	50 (Cash)			$10
10/20	Sales	80 (Receivables)			$11
10/31	Inventory Balance	?		?

Assuming the periodic inventory system is used, determine, using FIFO: (A) COGS for the October 12 Sales. (B) COGS for the October 20 Sales. (C)The Balance of ending inventory in units and total cost on October 31. Prepare the appropriate journal entries to record: (D) The October 6 purchase. (E) The October 11 Purchase. (F) The October 16 Purchase. (G) The October 30 Purchase. (H) The October 12 Sales. (I) The October 20 Sales. (J) The entries to close the October income statement items to Income Summary. (Assume that sales revenue and the elements of cost of goods sold are the only income statement items.)