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* Question 9

You are given the following information for Oriole Company for the month ended November 30, 2017:

Date

Description

UnitsUnit Price

Nov. 1

Beginning inventory

60$49

9

Purchase

1004615

Sale

(125)22

Purchase

15044

29

Sale

(170)30

Purchase

4443

Oriole Company uses a perpetual inventory system. All sales and purchases are on account.

a) Calculate the cost of goods sold and the ending inventory using FIFO. (Round answers to 0 decimal places, e.g. 5,275.)

Cost of goods sold$

Ending inventory$

b) Assume the sales price was $66 per unit for the goods sold on November 15, and $60 per unit for the sale on November 29. Prepare journal entries to record the November 22 purchase and the November 29 sale. (Credit account titles are automatically indented when the amount is entered.Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Date

Account Titles and Explanation

Debit

Credit

Nov. 22

(To record goods purchased on account)

Nov. 29

(To record credit sale)Nov. 29

(To record cost of goods sold)

c)

Calculate gross profit for November. (Round answer to 0 decimal places, e.g. 5,275.) Gross profit $ Assume that at the end of November, the company counted its inventory. There are 57 units on hand. What journal entry, if any, should the company make to record the shortage? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit Revised gross profit $ If the company had not discovered this shortage, what would be overstated or understated on the balance sheet and income statement and by what amount? The on the balance sheet would be " by $ , as well as the account by the same amount. The on the income statement would be " by $