Question

PT Maju Jaya sells one product. The following information is available for January.

January 1, Inventory 100 units at a price of Rp 12,000 / unit

January 4, Sales of 80 units at a price of Rp 16,000 / unit

January 11, Purchased 150 units at a price of Rp 13,000 / unit

January 13, Sales of 120 units at a price of Rp 17,500 / unit

January 20, Purchased 160 units at a price of Rp 14,000 / unit

January 27, Sales of 100 units at a price of Rp 18,000 / unit

The company uses the FIFO cost flow assumption. All purchases and sales are made on credit.

Requested:

a. Assume the company uses a perpeptual system. Prepare all required journal entries!

b. Calculate gross profit using the perpeptual system!

Answer 1

Date	Account Titles	Debit	Credit
Jan-04	Accounts Receivable	1280000
	Sales		1280000
	To record the Sales on account
Jan-04	Cost of Goods Sold	960000
	Inventory		960000
	To record the cost of Sales
Jan-11	Inventory	1950000
	Accounts Payable		1950000
	(To record the Purchase on Account
Jan-13	Accounts Receivable	2100000
	Sales		2100000
	To record the Sales on account
Jan-13	Cost of Goods Sold	1540000
	Inventory		1540000
	To record the cost of Sales
Jan-20	Inventory	2240000
	Accounts Payable		2240000
	(To record the Purchase on Account
Jan-27	Accounts Receivable	1800000
	Sales		1800000
	To record the Sales on account
Jan-27	Cost of Goods Sold	1350000
	Inventory		1350000
	To record the cost of Sales

Workings

FIFO
	Purchases	Cost of Sales	Balance
Date	Units	Cost	Total	Units	Cost	Total	Units	Cost	Total
Jan 01							100	12000	1200000
Jan 04				80	12000	960000	20	12000	240000
Jan 11	150	13000	1950000				20	12000	240000
150	13000	1950000
Jan 13				20	12000	240000	50	13000	650000
100	13000	1300000
Jan 20	160	14000	2240000				50	13000	650000
160	14000	2240000
Jan 27				50	13000	650000	110	14000	1540000
50	14000	700000
Totals	310		4190000	200		3850000			1540000

Gross Profit

Date	Sales	Cost Of Sales	Gross Profit
Jan-04	1280000	960000	320000
Jan-13	2100000	1540000	560000
Jan-27	1800000	1350000	450000
	5180000	3850000	1330000