Bright Sales, Inc.'s inventory records for a particular development program show the following at January 31

At January 31, nine of these programs are on hand. Joumalize the following for Bright Sales, Inc., under the perpetual system:

1. Total January purchases in one summary entry. All purchases were on credit.

2. Total January sales and cost of goods sold in two summary entries. The selling price was $600 per unit, and all sales were on credit. Assume that Bright Sales. Inc., uses the FIFO inventory method.

3. Under FIFO, how much gross profit would Bright Sales. Inc., earn on these transactions? What is the FIFO cost of Bright Sales. Inc.'s ending inventory?

Transcribed Image Text:

Jan 1 Beginning inventory. 15 Purchase..... 26 Purchase... ****** *********** 5 units @ $155 = 8 units 156 = 13 units @ 165 = $ 775 $1,248 $2,145 Jan 1 Beginning inventory. 15 Purchase..... 26 Purchase... ****** *********** 5 units @ $155 = 8 units 156 = 13 units @ 165 = $ 775 $1,248 $2,145

Answer rating: 100% (QA)

Firstin FirstOut method FIFO Under FIFO method the cost of first acquired items is assigned to sales first The value of the dosing stock includes the ... View the full answer