Chippewas Company sells one product. Presented below is information for January
ID: 2379592 • Letter: C
Question
Chippewas Company sells one product. Presented below is information for January for Chippewas Company.
Chippewas uses the FIFO cost flow assumption. All purchases and sales are on account.
A. Assume Chippewas 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 118 units.
Journal Entries:
Jan 4th: ________
_________
Jan 11th:________
_________
Jan. 13th: ________
_________
Jan. 20th:_________
__________
Jan. 27th:__________
Jan 31st: _________
__________
__________
___________
Jan. 1 Inventory 102 units at $5 each 4 Sale 78 units at $8 each 11 Purchase 143 units at $7 each 13 Sale 110 units at $9 each 20 Purchase 168 units at $6 each 27 Sale 107 units at $10 eachExplanation / Answer
DATE PARTICULARS DEBIT CREDIT 4-Jan Accounts Receivable A/C 624 To Sales A/C 624 [Sold 78 units @ $8/unit.] 4-Jan Cost of Goods Sold A/C 390 To Inventory A/C 390 [Recording of goods sold.] 11-Jan Inventory A/C 1001 To Accounts Payable A/C 1001 [Purchased 143 units @ $7/unit.] 13-Jan Accounts Receivable A/C 990 To Sales A/C 990 [Sold 110 units @ $9/unit.] 13-Jan Cost of Goods Sold A/C 722 To Inventory A/C 722 [Recording of goods sold.] 20-Jan Inventory A/C 1008 To Accounts Payable A/C 1008 [Purchased 168 units @ $6/unit.] 27-Jan Accounts Receivable A/C 1070 To Sales A/C 1070 [Sold 107 units @ $10/unit.] 27-Jan Cost of Goods Sold A/C 699 To Inventory A/C 699 [Recording of goods sold.] 31-Jan Profit or Loss A/C 1811 To Cost of Goods Sold A/C 1811 [Balance entry for COGS.]
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