(Learning Objectives 1, 2: Show how to account for inventory transactions; applythe FIFO cost method) Griffin Company’s inventory records for its retail division show thefollowing at December 31:Dec 1 Beginning inventory ............... 9 units @ $165 = $1,48515 Purchase................................. 5 units @ 166 = $ 83026 Purchase................................. 13 units @ 175 = $2,275At December 31, 11 of these units are on hand. Journalize the following for Griffin Companyunder the perpetual system:1. Total December purchases in one summary entry. All purchases were on credit.2. Total December sales and cost of goods sold in two summary entries. The selling price was$500 per unit, and all sales were on credit. Assume that Griffin uses the FIFO inventorymethod.3. Under FIFO, how much gross profit would Griffin earn for the month ending December 31?What is the FIFO cost of Griffin Company’s ending inventory?
(Learning Objectives 1, 2: Show how to account for inventory transactions; apply
the FIFO cost method) Griffin Company’s inventory records for its retail division show the
following at December 31:
Dec 1 Beginning inventory ............... 9 units @ $165 = $1,485
15 Purchase................................. 5 units @ 166 = $ 830
26 Purchase................................. 13 units @ 175 = $2,275
At December 31, 11 of these units are on hand. Journalize the following for Griffin Company
under the perpetual system:
1. Total December purchases in one summary entry. All purchases were on credit.
2. Total December sales and cost of goods sold in two summary entries. The selling price was
$500 per unit, and all sales were on credit. Assume that Griffin uses the FIFO inventory
method.
3. Under FIFO, how much gross profit would Griffin earn for the month ending December 31?
What is the FIFO cost of Griffin Company’s ending inventory?
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