Exercise 8-9 Fong Sai-Yuk Company sells one product. Presented below is informat

Question

Exercise 8-9 Fong Sai-Yuk Company sells one product. Presented below is information for January for Fong Sai-Yuk Company. Jan. 1 Inventory 111 units at $5 each 4 Sale 86 units at $8 each 11 Purchase 151 units at $6 each 13 Sale 117 units at $9 each 20 Purchase 164 units at $7 each 27 Sale 102 units at $11 each

Fong Sai-Yuk uses the FIFO cost flow assumption. All purchases and sales are on account.

Date

Account Titles and Explanation

Debit

Credit

Jan. 4

Jan. 11

Jan. 13

Jan. 20

Jan. 27

Jan. 31

SHOW LIST OF ACCOUNTS

LINK TO TEXT

LINK TO TEXT

SHOW LIST OF ACCOUNTS

LINK TO TEXT

LINK TO TEXT

Date

Account Titles and Explanation

Debit

Credit

Jan. 4

(To record the sale)

(To record the cost of inventory)

Jan. 11

Jan. 13

(To record the sale)

(To record the cost of inventory)

Jan. 20

Jan. 27

(To record the sale)

(To record the cost of inventory)

Compute gross profit using the perpetual system. (Round answer to 0 decimal places, e.g. 6,578.)

Fong Sai-Yuk uses the FIFO cost flow assumption. All purchases and sales are on account.

Explanation / Answer

Journal Entry:

Calculation of gross profit:

Working:

Date Accounting title Debit Credit 4-Jan Accounts Receivable 688       To Sales Revenue 688 11-Jan Purchase 906       To Accounts Payable 906 13-Jan Accounts Receivable 1053       To Sales Revenue 1053 20-Jan Purchase 1148       To Accounts Payable 1148 27-Jan Accounts Receivable 1122       To Sales Revenue 1122 31-Jan Cost of goods sold 847       To purchase 847

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