Ruggers Corporation sells one product, with information for July as follows: Ruggers uses the FIFO cost formula.

Question:

Ruggers sells one product, with information for July as follows:

Ruggers Corporation sells one product, with information for July as

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.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...