Question

Requirements or Big Fis ations fro Journalize the following for Big Fish Company under the perpetual system: 1. Total August purchases in one summary entry. All purchases were on credit. 2. Total August sales and cost of goods sold in two summary entries. The selling price was $625 per unit, and all sales were on credit. Assume that Big Fish uses the FIFO inventory method. 3. Under FIFO, how much gross profit would Big Fish earn on for the month ending August 31? What is the FIFO cost of Big Fish Company's ending inventory? Print | Done er any number i tremput terus and then CHICK CHECK Answer. Clear All GOTHIC prm5 CVEV CHOS

Answer 1

Answer-No.of units available for sale= 9+5+11

=25

Number of units in ending inventory= 10

Number of units sold= Number of units available for sale-Number of units in ending inventory

=25-10

=15

units sold include 9 units from beginning inventory+5 units for August 15+ 1 unit for August 26 purchase

Sales revenue= No.of units sold * selling price per unit

=15*625

=9,375

Cost of goods sold= 9 units *$160= $1,440

+ 5 units *$161= $805

+1 units *$170= $170

=$2,415

Gross profit= Sales revenue- Cost of goods sold

$9,375- $2,415

=$6,960

Fifo cost of Big fish Company's ending inventory= 10 units * $170= $1,700

Journal Entries

Date	General Journal	Debit	Credit
	Purchase (805+1,870)	$2,675
	Accounts Payable		$2,675
	Accounts Receivable	$9,375
	Sales Revenue		$9,375
	Cost of good sold	$2,415
	Merchandise Inventory		$2,415