Question

Ruggers Corporation sells one product, with information for July as follows:
Ruggers uses the FIFO cost formula. All purchases and sales are on account.
Instructions
(a) Assume Ruggers uses a periodic system. Prepare all necessary journal entries, including the end-of-month adjusting entry to record cost of goods sold. A physical count indicates that the ending inventory for July is 110 units.
(b) Calculate gross profit using the periodic system.
(c) Assume Ruggers uses the periodic system, and a count on July 31 reports only 102 units in ending inventory. How would your entries in (a) change, if at all? Explain briefly.
(d) Assume Ruggers uses a perpetual system. Prepare all July journal entries.
(e) Calculate gross profit using the perpetual system.
(f) Assume Ruggers uses the perpetual system, and a count on July 31 reports only 102 units in ending inventory. How would your entries in (d) change, if at all? Explain briefly.


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  • CreatedSeptember 18, 2015
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