Can you show me how to do this exact same problem but using the LIFO method?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can you show me how to do this exact same problem but using the LIFO method?
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(Periodic versus Perpetual Entries) Fong...
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(Periodic versus Perpetual Entries) Fong Sai-Yuk
Company sells one product. Presented below is
information for January for Fong Sai-Yuk Company.
Jan. 1 Inventory 100 units at $5 each
80 units at $8 each
Jan. 11 Purchase 150 units at $6 each
120 units at $8.75 each
Jan. 20 Purchase 160 units at $7 each
100 units at $9 each
Jan. 4 Sale
Jan. 13 Sale
Jan. 27 Sale
Fong Sai-Yuk uses the FIFO cost flow assumption. All
purchases and sales are on account.
Instructions
(a) Assume Fong Sai-Yuk 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 110 units.
(b) Compute gross profit using the periodic system.
(c) Assume Fong Sai-Yuk uses a perpetual system.
Prepare all necessary journal entries.
(d) Compute gross profit using the perpetual system.
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