Debits Equal Credits sells one product. Presented below is information for January about purchases and sales by Debits Equal Credits.

Jan. 1 Inventory- 100 units at $5 each

Jan. 4 Sale- 80 units at $8 each

Jan. 11 Purchase- 150 units at $6 each

Jan 13. Sale- 120 units at $8.75 each

Jan 20. Purchase- 160 units at $7 each

Jan 27. Sale- 100 units at $9 each

Debits Equal Credits uses the LIFO cost flow assumption. All purchases and sales are on account.

Instructions:

(a) Assume Debits Equal Credits 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 Debits Equal Credits uses a perpetual system. Prepare all necessary journal entries.

(d) Compute gross profit using the perpetual system.