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Date Account Titles and Explanation Debit Credit Jan. 31 SHOW LIST OF ACCOUNTS S

ID: 2548834 • Letter: D

Question

Date

Account Titles and Explanation

Debit

Credit

Jan. 31

SHOW LIST OF ACCOUNTS

SHOW LIST OF ACCOUNTS

Date

Account Titles and Explanation

Debit

Credit

(To record the sale)

(To record the cost of inventory)

(To record the sale)

(To record the cost of inventory)

(To record the sale)

(To record the cost of inventory)

SHOW LIST OF ACCOUNTS

Bramble Company sells one product. Presented below is information for January for Bramble Company.
Jan. 1 Inventory 107 units at $5 each 4 Sale 84 units at $8 each 11 Purchase 146 units at $6 each 13 Sale 118 units at $9 each 20 Purchase 153 units at $7 each 27 Sale 89 units at $10 each
Bramble uses the FIFO cost flow assumption. All purchases and sales are on account.

Explanation / Answer

Answer

Working for COGS

FIFO

Cost of Goods available for sale

Cost of Goods Sold

Ending Inventory

Units

Cost/unit

COG for sale

Units sold

Cost/unit

COGS

Units

Cost/unit

Ending inventory

Beginning Inventory

107

5

535

107

5

535

0

5

0

Purchases:

Jan-11

146

6

876

146

6

876

0

6

0

Jan-20

153

7

1071

38

7

266

115

7

805

TOTAL

406

$2482

291

$1677

115

$805

Gross Profit/Margin

Sales

Units

Rate

Amount

Jan-04

84

8

$672

Jan-13

118

9

$1062

Jan-27

89

10

$890

0

Total

291

$2624

(-) CoGS

291

$1677

Gross Profit

$947

Journal Entries [based on above figures]

Date

Account Titles and Explanation

Debit ($)

Credit ($)

Jan-04

Accounts receivables

672

Sales Revenue

672

Jan-11

Inventory

876

Accounts payables

876

Jan-13

Accounts receivables

1062

Sales Revenue

1062

Jan-20

Inventory

1071

Accounts payables

1071

Jan-27

Accounts receivables

890

Sales Revenue

890

Jan. 31

Cost of Goods Sold

1677

Jan-04

Inventory

1677

Working

FIFO

Opening + Purchases

Cost of Goods Sold

Closing Inventory

Beg Inventory

107

5.00

535

107

5.00

535.00

jan 4 Sale

84

5.00

420

23

5.00

115.00

Jan 11 Purchase

146

6.00

876

23

5.00

115.00

146

6.00

876.00

jan 13 Sale

23

5.00

115

51

6.00

306.00

95

6.00

570

0.00

Jan 20 Purchase

153

7.00

1071

51

6.00

306.00

153

7.00

1071.00

Jan 27 Sale

51

6.00

306

115

7.00

805.00

38

7.00

266

TOTAL

406

$2482

291

$1677

115

$805

Gross Profit/Margin: Will be same as   under periodic inventory system because under FIFO, GP under both stays the same

Sales

Units

Rate

Amount

Jan-04

84

8

$672

Jan-13

118

9

$1062

Jan-27

89

10

$890

0

Total

291

$2624

(-) CoGS

291

$1677

Gross Profit

$947

Journal Entries

Date

Account Titles and Explanation

Debit

Credit

04-Jan

Accounts receivables

672

Sales Revenue

672

(To record the sale)

Cost of Goods Sold

420

Inventory

420

(To record the cost of inventory)

11-Jan

Inventory

876

Accounts Payables

876

13-Jan

Accounts receivables

1062

Sales Revenue

1062

(To record the sale)

Cost of Goods Sold

685

Inventory

685

(To record the cost of inventory)

20-Jan

Inventory

1071

Accounts Payables

1071

27-Jan

Accounts receivables

890

Sales Revenue

890

(To record the sale)

Cost of Goods Sold

572

Inventory

572

(To record the cost of inventory)

FIFO

Cost of Goods available for sale

Cost of Goods Sold

Ending Inventory

Units

Cost/unit

COG for sale

Units sold

Cost/unit

COGS

Units

Cost/unit

Ending inventory

Beginning Inventory

107

5

535

107

5

535

0

5

0

Purchases:

Jan-11

146

6

876

146

6

876

0

6

0

Jan-20

153

7

1071

38

7

266

115

7

805

TOTAL

406

$2482

291

$1677

115

$805

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