Chippewas Company sells one product. Presented below is information for January for Chippewas Company.

Chippewas uses the FIFO cost flow assumption. All purchases and sales are on account.
Instructions

(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.

(b) Compute gross profit using the periodic system.

(c) Assume Chippewas uses a perpetual system. Prepare all necessary journal entries.

(d) Compute gross profit using the perpetual system.

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Jan. 1 Inventory 4 Sale 11 Purchase 13 Sale 20 Purchase 27 Sale 100 units at $6 each 80 units at $8 each 150 units at $6.50 each 120 units at $8.75 each 160 units at $7 each 100 units at $9 each