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Solange Corp. sells one product, and uses the FIFO cost formula with information for December as follows:
Dec. 1 Inventory 100 units @ $5 each 4 Sale 80 units @ $8 each 11 Purchase 150 units @ $6.50 each 13 Sale 120 units @ $8.75 20 Purchase 160 units @ $7 each 27 Sale 100 units @ $10 each
Assume Solange uses a periodic system. Prepare all necessary journal entries, including the end of month adjusting entry to record cost of goods sold. A physical count revels 110 units in ending inventory for Dec.
Calculate gross profit.
Assume Solange uses a perpetual system. Prepare all Dec. journal entries.
Assume Solange uses the perpetual system and a count on Dec.31 reveals only 102 units in ending inventory. Would you need any adjusting entry? What would it be?
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