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

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

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

Instructions:

1. 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.
2. Compute gross profit using the periodic system.
3. Assume Chippewas uses a perpetual system, Prepare all necessary journal entries.
4. Compute gross profit using the perpetual system.

Answer rating: 100% (QA)

a Assume Chippewas uses a periodic system Prepare al... View the full answer