VaughnCompany sells one product. Presented below is information for January forVaughnCompany.

Jan. 1Inventory115units at $5each4Sale91units at $8each11Purchase156units at $7each13Sale128units at $9each20Purchase155units at $7each27Sale95units at $10each

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

1) AssumeVaughnuses a periodic system. Prepare 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 is112units.

2) Compute gross profit using the periodic system.

3) AssumeVaughnuses a perpetual system. Prepare necessary journal entries.

4) Compute gross profit using the perpetual system.