Ask Question
16 January, 21:28

Wifty Company sells one product. Presented below is information for January for Swifty Company.

Jan. 1 Inventory 103 units at $5 each

4 Sale 82 units at $8 each

11 Purchase 135 units at $7 each

13 Sale 102 units at $9 each

20 Purchase 167 units at $7 each

27 Sale 108 units at $11 each

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

Assume Wifty Company 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 119 units.

+2
Answers (1)
  1. 16 January, 21:31
    0
    Wifty Company

    Jan 4: Cr. Sales (82 * $8) $164

    Dr. Acc receivable. $164

    Being sales on account

    Jan 11: Dr. Acc payable (135*$7) $945

    Cr: Purchases. $945

    Being purchases on account

    Jan 13: Cr Sales. (102 * $9). $918

    Dr Acc receivable $918

    Being sales on account

    Jan 20:Dr. Acc payable. $1,169

    Cr:Purchases (167*$7) $1,169

    Being purchases on account

    Jan 27:Cr Sales. (108 * $11). $1,188

    Dr Acc receivable $1,188

    Being sales on account

    Periodic table

    Date. Description. Amount

    Jan 1. Opening. (130 * $5) $515

    Jan 4. Sales. (82 * $8) ($164)

    Jan 11 Purchases. (135 * $7) $945

    Jan 13 Sales. (102 * $9). ($918)

    Jan 20 Purchases. (167*$7). $1,169

    Jan 27 Sales. (108 * $11). ($1,188)

    Closing inventory. $359

    Beginning inventory + Purchases = Cost of goods available for sale

    = $515 + $945 + $1169 = $2,629

    Cost of goods available for sale - Ending inventory = Cost of goods sold = $2,629 - $359 = $2,270
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Wifty Company sells one product. Presented below is information for January for Swifty Company. Jan. 1 Inventory 103 units at $5 each 4 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers