Question

Mariaold Company sellsone product. Presented below armation for anary for Marigold Company Jan. 1 Inventory 4 Sale 11 Purchase 13 Sale 20 Purchase 27 Sale 104 units at $ cach 79 units Sexch 145 units at $é cach 115 units each 162 units at $ecach 107 units at $10 each Marigold uses the FIFO custow 3sumption. All purchases and sales are on account f goods sold physical count indicates that the ending inventory for anary is units. entry required, select "No entry for the accounts and enter for the amounts Credit account bites or Assume Marigold uses a periodic system. Prepare al necessarylouma entries, including the end-of-month closingentry to record o automatically indeed when montere. Dendermany Date Account Titles and Explanation Debit Credit 17 Teethonk and Media List of Accents Campule gross profit using the periodistem Grosults e Textbook and Media of Armin Previous

Answer 1

a)

Date	Account Titles and Explanation	Debit	Credit
Jan 04	Accounts Receivable	632
	Sales Revenue (79 X $8)		632
Jan 11	Purchases ($145 X $6.00)	870
	Accounts Payable		870
Jan 13	Accounts Receivable	1035
	Sales Revenue (115 X $9)		1035
Jan 20	Purchases (162 X $6)	972
	Accounts Payable		972
Jan 27	Accounts Receivable	1070
	Sales Revenue (107 X $10)		1070
Jan 31	Inventory ($10 X 110)	1100
	Cost of Goods Sold	1262*
	Purchases ($870 + $972)		1842
	Inventory (104 X $5)		520
	* (520 + 1842 -1100 )

Sales Revenue ($632 + $1,035 + $1070)	2737
Cost of Goods Sold	1262
Gross profit	1475

b.

Date	Account Titles and Explanation	Debit	Credit
Jan 04	Accounts Receivable	632
	Sales Revenue (79 X $8)		632
	Cost of goods sold	395
	Inventory (79 units × $5.00 each)		395
Jan 11	Inventory ($145 X $6.00)	870
	Accounts Payable		870
Jan 13	Accounts Receivable	1035
	Sales Revenue (115 X $9)		1035
	Cost of goods sold	665
	Inventory [(25units × $5.00each)+(90units × $ 6each)]		665
Jan 20	Inventory (162 X $6)	972
	Accounts Payable		972
Jan 27	Accounts Receivable	1070
	Sales Revenue (107 X $10)		1070
	Cost of goods sold	642
	Inventory [(55units×$6each)+(52units×$6.00each)]		642

Sales [ (79units X $8 each) + (115 units × $9 each) + (107 units × $10.00each)]	2737
Cost of goods sold	1702
Gross profit	1035