Chapter 6, Problem 6.16AE

 LO 1,2

(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 tor 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?