Question

Oriole Company sells one product. Presented below is information for January for Oriole Company. Jan. 1 Inventory 120 units at $5 each 4 Sale 96 units at $8 each 11 Purchase 141 units at $7 each 13 Sale 113 units at $9 each 20 Purchase 160 units at $7 each 27 Sale 104 units at $11 each Oriole uses the FIFO cost flow assumption. All purchases and sales are on account.

Answer 1

Oriole Requirement a Journal Enteries Date Particulars Jan-04 Accounts Receivable a/c To Sales Revenue (Sales on account) 96 x 8 Dr. Debit in $ Credit in $ 768 768 Dr. 987 Jan-11 Purchases a/c To Accounts Payable (Purchase on account) 141 x 7 987 Dr. 1017 Jan-13 Accounts Receivable a/c To Sales Revenue (Sales on account) 113 x 9 1017 Dr. 1120 Jan-20 Purchases a/c To Accounts Payable (Purchase on account) 160 x 7 1120 Jan-27 Dr. 1144 Accounts Receivable a/c To Sales Revenue (Sales on account) 104 x 11 1144 Jan-31 Inventory a/c Dr. 756 Cost of Goods Sold a/c Dr. 1951 To Purchases ( 987 +1120) To Inventory (120 x 5) 108 x 7 = 756 ; *($600 + $2,107 - $756) = 1951 2107 600 Requirement b Sales Revenue ($768 + $1,017 + $1144) Cost of goods sold Gross profit 2929 1951 978

Requirement Journal Enteries Date Particulars Jan-04 Accounts Receivable a/c To Sales Revenue (Sales on account) 96 x 8 Dr. Debit in $ Credit in $ 768 768 Cost of Goods Sold a/c Dr. To Inventory (To record cost of goods sold) 96 x 5 480 Jan-11 987 Inventory a/c Dr. To Accounts Payable (Inventory on account) 141 x 7 987 Dr. 1017 Jan-13 Accounts Receivable a/c To Sales Revenue (Sales on account) 113 x 9 1017 743 743 Cost of Goods Sold a/c Dr. To Inventory (To record cost of goods sold) (24 x 5 ) + ( 89 x 7) Jan-20 1120 Inventory a/c Dr. To Accounts Payable (Inventory on account) 160 x 7 1120 Jan-27 Dr. 1144 Accounts Receivable a/c To Sales Revenue (Sales on account) 104 x 11 1144 728 728 Cost of Goods Sold a/c Dr. To Inventory (To record cost of goods sold) (52 x 7) + ( 52 x 7) Requirement d Sales Revenue ($768 + $1,017 + $1144) Cost of goods sold Gross profit 2929 1951 978