Question

Practice Exercise 8-2 Pharoah Company sells one product. Presented below is information for January for Pharoah Company. Nov. 1 Inventory 290 units at $9 each 5 Purchase 220 units at $10 each 10 Sale 410 units at $20 each 15 Purchase 410 units at $9.50 each 21 Sale 460 units at $21 each 30 Purchase 360 units at $9.80 each Pharoah uses the FIFO cost flow assumption. All purchases and sales are on account. Partially correct answer. Your answer is partially correct. Try again. Assume Pharoah 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 November is 410 units. (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. Record journal entries in the order presented in the problem.) Compute gross profit using the periodic system. Gross profit ？ Assume Pharoah 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. Record journal entries in the order presented in the problem.) Compute gross profit using the perpetual system. Gross profit

Answer 1

Answer a.

Answer b.

Sales Revenue = $8,200 + $9,660
Sales Revenue = $17,860

Gross Profit = Sales Revenue - Cost of Goods Sold
Gross Profit = $17,860 - $8,230
Gross Profit = $9,630

Answer c.

Answer d.

Sales Revenue = $8,200 + $9,660
Sales Revenue = $17,860

Cost of Goods Sold = $3,810 + $4,420
Cost of Goods Sold = $8,230

Gross Profit = Sales Revenue - Cost of Goods Sold
Gross Profit = $17,860 - $8,230
Gross Profit = $9,630