Exercise 8-9 (Part Level Submission) (a) Date Account Titles and Explanation Deb
ID: 2426702 • Letter: E
Question
Exercise 8-9 (Part Level Submission)
(a)
Date
Account Titles and Explanation
Debit
Credit
Jan. 4
Jan. 11
Jan. 13
Jan. 20
Jan. 27
Jan. 31
SHOW LIST OF ACCOUNTS
SHOW SOLUTION
SHOW ANSWER
LINK TO TEXT
LINK TO TEXT
(b)
Exercise 8-9 (Part Level Submission)
Fong Sai-Yuk Company sells one product. Presented below is information for January for Fong Sai-Yuk Company.Jan. 1 Inventory 113 units at $4 each 4 Sale 91 units at $8 each 11 Purchase 153 units at $6 each 13 Sale 119 units at $9 each 20 Purchase 167 units at $7 each 27 Sale 104 units at $10 each
Fong Sai-Yuk uses the FIFO cost flow assumption. All purchases and sales are on account.
Explanation / Answer
Periodic Inventory System- FIFO:
Calculations of Cost of Goods sold and Inventory:
Date
Units
Rate
Amount
A
B
A*B
Jan. 1
Inventory
113
$ 4.00
$ 452.00
11
Purchase
153
$ 6.00
$ 918.00
20
Purchase
167
$ 7.00
$ 1,169.00
Cost of Goods Available for Sale =
$ 2,539.00
Less: Cost of ending inventory (119 units *$7)
$ (833.00)
= Cost of Goods sold
$ 1,706.00
Calculation of Sales and Gross Profit:
Date
Units
Rate
Amount
A
B
A*B
Jan. 4
Sale
91
$ 8.00
$ 728.00
13
Sale
119
$ 9.00
$ 1,071.00
27
Sale
104
$ 10.00
$ 1,040.00
Total Sales
$ 2,839.00
Less: Cost of Goods sold
$ (1,706.00)
Gross Profit
$ 1,133.00
Periodic Inventory System- FIFO:
Calculations of Cost of Goods sold and Inventory:
Date
Units
Rate
Amount
A
B
A*B
Jan. 1
Inventory
113
$ 4.00
$ 452.00
11
Purchase
153
$ 6.00
$ 918.00
20
Purchase
167
$ 7.00
$ 1,169.00
Cost of Goods Available for Sale =
$ 2,539.00
Less: Cost of ending inventory (119 units *$7)
$ (833.00)
= Cost of Goods sold
$ 1,706.00
Calculation of Sales and Gross Profit:
Date
Units
Rate
Amount
A
B
A*B
Jan. 4
Sale
91
$ 8.00
$ 728.00
13
Sale
119
$ 9.00
$ 1,071.00
27
Sale
104
$ 10.00
$ 1,040.00
Total Sales
$ 2,839.00
Less: Cost of Goods sold
$ (1,706.00)
Gross Profit
$ 1,133.00
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