a Date Account Titles and Explanation Debit Credit Jan 31 SH

(a)

Date

Account Titles and Explanation

Debit

Credit

Jan. 31

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(b)

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(c)

Date

Account Titles and Explanation

Debit

Credit

(To record the sale)

(To record the cost of inventory)

(To record the sale)

(To record the cost of inventory)

(To record the sale)

(To record the cost of inventory)

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Bridgeport Company sells one product. Presented below is information for January for Bridgeport Company. Jan. 1 Inventory 109 units at $4 each 4 Sale 85 units at $8 each 11 Purchase 137 units at $7 each 13 Sale 109 units at $9 each 20 Purchase 151 units at $7 each 27 Sale 93 units at $11 each Bridgeport uses the FIFO cost flow assumption. All purchases and sales are on account.

Solution

Answers

Sales

Units

Rate

Amount

Jan-04

85

$                 8.00

$          680.00

Jan-13

109

$                 9.00

$          981.00

Jan-27

93

$               11.00

$      1,023.00

Total

287

$      2,684.00

FIFO

Cost of Goods available for sale

Cost of Goods Sold

Ending Inventory

Units

Cost/unit

COG for sale

Units sold

Cost/unit

COGS

Units

Cost/unit

Ending inventory

Beginning Inventory

109

$                          4.00

$                           436.00

109

$                   4.00

$                                                       436.00

0

$                   4.00

$                        -  

Purchases:

11-Jan

137

$                          7.00

$                           959.00

137

$                   7.00

$                                                       959.00

0

$                   7.00

$                        -  

20-Jan

151

$                          7.00

$                       1,057.00

41

$                   7.00

$                                                       287.00

110

$                   7.00

$              770.00

TOTAL

397

$                       2,452.00

287

$                                                    1,682.00

110

$              770.00

----Journal Entries:

Date

Accounts title

Debit

Credit

Jan-04

Accounts receivables

$                     680.00

Sales Revenue

$                           680.00

(sale on account)

Jan-11

Purchase

$                     959.00

Accounts payable

$                           959.00

(merchandise purchased)

Jan-13

Accounts receivables

$                     981.00

Sales Revenue

$                           981.00

(sale on account)

Jan-20

Purchase

$                 1,057.00

Accounts payable

$                       1,057.00

(merchandise purchased)

Jan-27

Accounts receivables

$                 1,023.00

Sales Revenue

$                       1,023.00

(sale on account)

Jan-31

Cost of Goods Sold [see working above-cost of goods sold column total]

$                 1,682.00

Inventory

$                       1,682.00

(inventory value adjusted)

FIFO Method

Purchases

Cost of merchandise Sold

Inventory

Date

Quantity

Unit Cost

Total Cost

Quantity

Unit Cost

Total Cost

Quantity

Unit Cost

Total Cost

Jan-01

109

$       4.00

$          436.00

Jan-04

$                   -  

85

$       4.00

$          340.00

24

$       4.00

$            96.00

$                   -  

Jan-11

137

$       7.00

$          959.00

$                   -  

24

$       4.00

$            96.00

137

$       7.00

$          959.00

Jan-13

24

$       4.00

$            96.00

52

$       7.00

$          364.00

85

$       7.00

$          595.00

Jan-20

151

$       7.00

$      1,057.00

52

$       7.00

$          364.00

151

$       7.00

$      1,057.00

Jan-27

52

$       7.00

$          364.00

110

7

$          770.00

41

$       7.00

$          287.00

Total

288

$      2,016.00

287

$      1,682.00

110

$          770.00

---Journal Entries:

Date

Accounts title

Debit

Credit

Jan-04

Accounts receivables

$                           680.00

Sales Revenue

$              680.00

(sale on account)

Jan-04

Cost of Goods Sold

$                           340.00

Inventory

$              340.00

(cost of goods sold adjusted)

Jan-11

Purchase

$                           959.00

Accounts payable

$              959.00

(merchandise purchased)

Jan-13

Accounts receivables

$                           981.00

Sales Revenue

$              981.00

(sale on account)

Jan-13

Cost of Goods Sold [96 + 595]

$                           691.00

Inventory

$              691.00

(cost of goods sold adjusted)

Jan-20

Purchase

$                        1,057.00

Accounts payable

$           1,057.00

(merchandise purchased)

Jan-27

Accounts receivables

$                        1,023.00

Sales Revenue

$           1,023.00

(sale on account)

Jan-27

Cost of Goods Sold

$                           651.00

Inventory

$              651.00

(cost of goods sold adjusted)

Sales	Units	Rate	Amount
Jan-04	85	$                 8.00	$          680.00
Jan-13	109	$                 9.00	$          981.00
Jan-27	93	$               11.00	$      1,023.00
Total	287		$      2,684.00