Nash Company sells one product. Presented below is informationfor January for Nash Company.
Jan. 1 Inventory 122 units at $4 each
4 Sale 101 units at $8 each
11 Purchase 164 units at $6 each
13 Sale 132 units at $9 each
20 Purchase 169 units at $6 each
27 Sale 106 units at $10 each
Nash uses the FIFO cost flow assumption. All purchases and salesare on account.
1. Assume Nash uses a periodic system. Prepare all necessaryjournal entries, including the end-of-month closing entry to recordcost of goods sold. A physical count indicates that the endinginventory for January is 116 units.
- Compute gross profit using the periodicsystem. Gross profit=?
2. Assume Nash uses a perpetual system. Prepare all necessaryjournal entries.
- Compute gross profit using the periodicsystem. Gross profit=?
Could explain more about how to calculate on part 2 about how torecord sale and how to record the cost of inventory?
