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·\'11 Verizon 8:20 AM edugen.wileyplus.com C Kieso, Intermediate Accounting, 16e

ID: 2567053 • Letter: #

Question

·'11 Verizon 8:20 AM edugen.wileyplus.com C Kieso, Intermediate Accounting, 16e Shefield Company sells one product. Presented below is information for january for Sheffield Company an 1 Inventory 121 units at 54 each 100 units at 38 each 11 Purchase 159 units at 56 each 4 Sale 13 Sale 27 Sale 114 units at $11 each Sheffield uses the FIFO cost flow assumption All purchases and sales are on account Assume Sheffield uses a periodic system Prepare al necessary journalentries, including the end-ol-month closing entry to record cost o goods sold A physical count indicanes that the ending invenoy for jauary is 115 units. (fno entry is equined select "Ne entry ar the eccount titles and enter the amounts. Credit account titles are to netically indented when amount is entered. Do not nt Date Account Titles and Explanation Version

Explanation / Answer

In the books of Sheffield Company : FIFO Periodic

Gross Profit under Periodic Inventory = Sales - Cost of Goods Sold = $ 3,188 - $ 1,858 = $ 1,330.

In the books of Sheffield Co. : FIFO Perpetual.

Gross Profit under Perpetual Inventory = Sales - Cost of Goods Sold = $ 3,188 - $ 1,858 = $ 1,330.

Date Account Titles Debit Credit $ $ January 4 Accounts Receivable ( 100 x $ 8) 800 Sales 800 January 11 Purchase ( 159 x $ 6) 954 Accounts Payable 954 January 13 Accounts Receivable ( 126 x $ 9) 1,134 Sales 1,134 January 20 Purchase ( 175 x $ 7) 1,225 Accounts Payable 1,225 January 27 Accounts Receivable ( 114 x $ 11) 1,254 Sales 1,254 January 31 Inventory ( 115 x $ 7) 805 Cost of Goods Sold ( 484 + 2,179 - 805) 1,858 Purchase 2,179 Inventory ( 121 x $ 4) 484