Question 1 Swifty Company sells one product. Presented below is information for

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Question 1 Swifty Company sells one product. Presented below is information for January for Swifty Company. Jan. 1 Inventory 107 units at $5 each 84 units at $8 each 146 units at $6 each 118 units at $9 each 153 units at 7 each 4 Sale 11 Purchase 13 Sele 20 Purchase 27 Sale 89 units at $10 each Swifty uses the FIFO cost flow assumption. All purchases and sales are on account. (a) Assume Swifty uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 115 units. (Ir no entry is required, select "No entry" for the account tities and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 31

Explanation / Answer

JOURNAL ENTRIES: DATE ACCOUNTS TITLE AND EXPLANATIONS DEBIT $ CREDIT $ 4-Jan Accounts receivable Dr. 672         Sales revenue 672 11-Jan Purchases Dr. 876      Accounts payable 876 13-Jan Accounts receivable Dr. 1062         Sales revenue 1062 20-Jan Purchases Dr. 1071      Accounts payable 1071 27-Jan Accounts receivable Dr. 890         Sales revenue 890 31-Jan Inventory Dr. 1947     Purchases 1947 (for closing the purchases in inventory) 31-Jan Cost of goods sold Dr. 1677       Inventory 1677 (for inventory adjusted for physical units and balance transferred to COGS) Note: Computation of COGS: Beginning Inventory 535 Add: Total purchases 1947 Total Goods available for sale 2482 Less: Ending Inventory (115 units @7) 805 COGS 1677

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