Sheffield Company sells one product. Presented below is information for January for Sheffield Company. Jan. 1 Inventory 117 units at $5 each 4 Sale 94 units at $8 each 11 Purchase 153 units at $7 each 13 Sale 123 units at $9 each 20 Purchase 154 units at $7 each 27 Sale 90 units at $11 each Sheffield uses the FIFO cost flow assumption. All purchases and sales are on account. Correct answer iconYour answer is correct. Assume Sheffield 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 117 units. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Question

Business

Tommy

14 February, 09:35

Sheffield Company sells one product. Presented below is information for January for Sheffield Company. Jan. 1 Inventory 117 units at $5 each 4 Sale 94 units at $8 each 11 Purchase 153 units at $7 each 13 Sale 123 units at $9 each 20 Purchase 154 units at $7 each 27 Sale 90 units at $11 each Sheffield uses the FIFO cost flow assumption. All purchases and sales are on account. Correct answer iconYour answer is correct. Assume Sheffield 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 117 units. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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Simpson · Answer 1

Solution:

Jan. 4 Accounts Receivable ... 752

Sales Revenue (94 X $8) ... 752

Jan. 11 Purchases ($153 X $7) ... 1071

Accounts Payable ... 1071

Jan. 13 Accounts Receivable ... 861

Sales Revenue (123 X $9) ... 861

Jan. 20 Purchases (154 X $7) ... 1,078

Accounts Payable ... 1,078

Jan. 27 Accounts Receivable ... 990

Sales Revenue (90 X 11) ... 990

Jan 11 Inventory ($7 X 117) ... 819

Cost of Goods Sold ... 816

Purchases ($752 + $1071) ... 1,823

Inventory (117 X $5) ... 585

* ($585 + $1,823 - $819)

Sales Revenue ($752 + $861 + $990) ... $2,603

Cost of goods sold ... 816

Gross profit ... $1787