Date Account Titles and Explanation Debit Credit Jan. 31 SHOW LIST OF ACCOUNTS L
ID: 2581437 • Letter: D
Question
Date
Account Titles and Explanation
Debit
Credit
Jan. 31
SHOW LIST OF ACCOUNTS
LINK TO TEXT
SHOW LIST OF ACCOUNTS
LINK TO TEXT
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
LINK TO TEXT
Swifty Company sells one product. Presented below is information for January for Swifty Company.Jan. 1 Inventory 118 units at $5 each 4 Sale 93 units at $8 each 11 Purchase 165 units at $6 each 13 Sale 136 units at $9 each 20 Purchase 163 units at $7 each 27 Sale 104 units at $11 each
Swifty uses the FIFO cost flow assumption. All purchases and sales are on account.
Explanation / Answer
Under Periodic Inventory System
Compute gross profit using the periodic system
Gross Profit = Sales - Cost of Goods Sold
....................= $744 + $1,224 + $1,144 - $1,930
....................= $1,182
Under Perpetual Inventory System
Compute gross profit using the perpetual system
Gross Profit = Sales - Cost of Goods Sold
....................= $744 + $1,224 + $1,144 - $1,930
....................= $1,182
Unit Price per unit Total Price Opening Inventory 118 $5 $590 Purchases: 11-Jan 165 $6 $990 20-Jan 163 $7 $1,141 Total Units Available for Sale 446 $2,721 Cost of Goods Sold: 4-Jan 93 $5 $465 13-Jan 25 $5 $125 13-Jan 111 $6 $666 27-Jan 54 $6 $324 27-Jan 50 $7 $350 Total units Sold 333 $1,930 Closing Inventory 113 $7 $791Related Questions
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