(LO 6, 7) E8-15 (Periodic Versus Perpetual Entries) Ruggers Corporation sells one product, with intormation...
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(LO 6, 7) E8-15 (Periodic Versus Perpetual Entries) Ruggers Corporation sells one product, with intormation for July as follows: July 1 Inventory 100 units at $15.00 each 4 Sale 80 units at $18.00 each 11 Purchase 150 units at $16.50 each 13 Sale 120 units at $18.75 each 20 Purchase 160 units at $17.00 each 27 Sale 100 units at $20.00 each Ruggers uses the FIFO cost formula. All purchases and sales are on account. Instructions (a) Assume Ruggers uses a periodic system. Prepare all necessary journal entries, including the end-of-month adjust ing entry to record cost of goods sold. A physical count indicates that the ending inventory for July is 110 units. (b) Calculate gross profit using the periodic system. (c) Assume Ruggers uses the periodic system, and a count on July 31 reports only 102 units in ending inventory. How would your entries in (a) change, if at all? Explain briefly. (d) Assume Ruggers uses a perpetual system. Prepare all July journal entries. (e) Calculate gross profit using the perpetual system. (1) Assume Ruggers uses the perpetual system, and a count on July 31 reports only 102 units in ending inventory. How would your entries in (d) change, if at all? Explain briefly
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