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Metlock Company sells one product. Presented below is information for January for Metlock Company. Jan. 1...

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

Jan. 1 Inventory 110 units at $5 each

Jan. 4 Sale 87 units at $8 each

Jan. 11 Purchase 156 units at $6 each

Jan. 13 Sale 126 units at $9 each

Jan. 20 Purchase 155 units at $6 each

Jan.27 Sale 99 units at $10 each

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

1. Assume Metlock 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 109 units.

2. Compute gross profit using the periodic system.

3. Assume Metlock uses a perpetual system. Prepare all necessary journal entries.

4. Compute gross profit using the perpetual system.

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