Question

Kingbird Company sells one product. Presented below is information for January for Kingbird Company.

Jan. 1		Inventory		121	units at $4 each
4		Sale		100	units at $8 each
11		Purchase		159	units at $6 each
13		Sale		126	units at $9 each
20		Purchase		175	units at $7 each
27		Sale		114	units at $11 each

Kingbird uses the FIFO cost flow assumption. All purchases and sales are on account.

Assume Kingbird uses a perpetual system. Prepare all necessary journal entries. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date                                                                      Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31	enter an account title to record the sale	enter a debit amount	enter a credit amount
	enter an account title to record the sale	enter a debit amount	enter a credit amount
	(To record the sale)
	enter an account title to record the cost of inventory	enter a debit amount	enter a credit amount
	enter an account title to record the cost of inventory	enter a debit amount	enter a credit amount
	(To record the cost of inventory)
choose a transaction date                                                                      Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                                      Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31	enter an account title to record the sale	enter a debit amount	enter a credit amount
	enter an account title to record the sale	enter a debit amount	enter a credit amount
	(To record the sale)
	enter an account title to record the cost of inventory	enter a debit amount	enter a credit amount
	enter an account title to record the cost of inventory	enter a debit amount	enter a credit amount
	(To record the cost of inventory)
choose a transaction date                                                                      Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                                      Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31	enter an account title to record the sale	enter a debit amount	enter a credit amount
	enter an account title to record the sale	enter a debit amount	enter a credit amount
	(To record the sale)
	enter an account title to record the cost of inventory	enter a debit amount	enter a credit amount
	enter an account title to record the cost of inventory	enter a debit amount	enter a credit amount
	(To record the cost of inventory)

Compute gross profit using the perpetual system.

Gross profit

$enter gross profit in dollars

Answer 1

Perpetual system
Journal Entry for Kingbird Company Company
Date	Account title	Debit	Credit
Jan-04	Accounts Receivable	$                  800
	Sales (100 units X $8 each)		$         800
	Cost of goods sold	$                  400
	Inventory (100 units X $4 each)		$         400
Jan-11	Purchases (159 units X $6 each)	$                  954
	Accounts Payable		$         954
Jan-13	Accounts Receivable	$               1,134
	Sales (126 units X $9 each)		$      1,134
	Cost of goods sold	$                  714
	Inventory (21*4+105*6)		$         714
Jan-20	Purchases (175 units X $7 each)	$               1,225
	Accounts Payable		$      1,225
Jan-27	Accounts Receivable	$               1,254
	Sales (114 units X $11 each)		$      1,254
	Cost of goods sold	$                  744
	Inventory (54*6+60*7)		$         744
	Sales	$        3,188
	Less: COGS	$       -1,858
	Gross Profit	$        1,330