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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