E8-9B(Periodic versus Perpetual Entries) Shin Company sells one product. Presented below is information for January for Shin Company. Jan. 1 Inventory 300 units at $10 each 4 Sale 240 units at $16 each 11 Purchase 450 units at $12 each 13 Sale 360 units at $17.50 each 20 Purchase 480 units at $14 each 27 Sale 300 units at $18 each Shin uses the FIFO cost flow assumption. All purchases and sales are on account. Instructions: (a) Assume Shin uses a periodic system. Prepare all necessary journal entries, including the end-of- month closing entry to record cost of goods sold. Aphysical count indicates that the ending inventory for January is 330 units. (b) Compute gross profit using the periodic system. (c) Assume Shin uses a perpetual system. Prepare all necessary journal entries. (d) Compute gross profit using the perpetual system.
Paper#7663 | Written in 18-Jul-2015Price : $25