Question - Flounder Company sells one product. Presented below is information for January for Flounder Company.
Jan. 1 Inventory 104 units at $5 each
4 Sale 79 units at $8 each
11 Purchase 145 units at $6 each
13 Sale 115 units at $9 each
20 Purchase 162 units at $6 each
27 Sale 107 units at $10 each
Flounder uses the FIFO cost flow assumption. All purchases and sales are on account.
Required - Assume Flounder 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.