Jan. 1 Inventory 100 units at $6 each 4 Sale 80 units at $8 each 11 Purchase

Jan. 1 Inventory 100 units at $6 each
4 Sale 80 units at $8 each
11 Purchase 150 units at $6.50 each
13 Sale 120 units at $8.75 each
20 Purchase 160 units at $7 each
27 Sale 100 units at $9 each Chippewas uses the FIFO cost flow assumption. All purchases and sales are on account. (a) Assume Chippewas 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 110 units. (List multiple debit/credit entries from largest to smallest amount e.g. 10 5
2.)
Date Description/Account Debit Credit
Jan. 4 Jan. 11 Jan. 13 Jan. 20 Jan. 27 Jan. 31
(b) Compute gross profit using the periodic system. $ (c) Assume Chippewas uses a perpetual system. Prepare all necessary journal entries.
Date Description/Account Debit Credit
Jan. 4
Inventory
Jan. 11 Jan. 13 Accounts receivable Jan. 20 Jan. 27 Accounts receivable
(d) Compute gross profit using the perpetual system. $