Question

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

Jan. 1		Inventory		110	units at $5 each
4		Sale		87	units at $8 each
11		Purchase		156	units at $6 each
13		Sale		126	units at $9 each
20		Purchase		155	units at $6 each
27		Sale		99	units at $10 each

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

(a)

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. (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	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	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	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	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	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 for the journal entry on January 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 31	enter a debit amount	enter a credit amount

B)

(b) Compute the gross profit using the periodic system.
	Text Title					Amount
	Text Title					Amount
	Text Title					Formula

(c) Assume Metlock Company uses a perpetual system. Prepare all necessary journal entries.
	Account Title				Amount
	Account Title					Amount
	Account Title				Amount
	Account Title					Amount
	Account Title				Amount
	Account Title					Amount
	Account Title				Amount
	Account Title					Amount
	Account Title				Amount
	Account Title					Amount
	Account Title				Amount
	Account Title					Amount
	Account Title				Amount
	Account Title					Amount
	Account Title				Amount
	Account Title					Amount

(d) Compute the gross profit using the perpetual system.
	Text Title					Amount
	Text Title					Amount
	Text Title					Formul

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Due to character limit I am attaching the images for solution of Perpetual FIFO worksheet.

Metlock
Periodic FIFO	No. of Units	Cost per unit	Total
Beginning Inventory	110.00	5.00	550.00
Purchased on Jan 11	156.00	6.00	936.00
Purchased on Jan 20	155.00	6.00	930.00
Goods available for sale	421.00		2,416.00
Cost of Goods sold
From Beginning Inventory	110.00	5.00	550.00
From Purchases on Jan 11	156.00	6.00	936.00
From Purchases on Jan 20	46.00	6.00	276.00
Total Cost of Goods sold	312.00		1,762.00

	Answer a- Journal Entries
Date	Account	Debit $	Credit $
4-Jan	Accounts Receivable	696.00
	Sales		696.00
11-Jan	Purchases	936.00
	Accounts Payable		936.00
13-Jan	Accounts Receivable	1,134.00
	Sales		1,134.00
20-Jan	Purchases	930.00
	Accounts Payable		930.00
27-Jan	Accounts Receivable	990.00
	Sales		990.00
31-Jan	Cost of merchandise sold	1,762.00
	Inventory		1,762.00

Answer b	Amount $
Sales	2,820.00
Less: Cost of goods sold	1,762.00
Gross profit	1,058.00

	Answer c- Journal Entries
Date	Account	Debit $	Credit $
4-Jan	Accounts Receivable	696.00
	Sales		696.00
4-Jan	Cost of merchandise sold	435.00
	Inventory		435.00
11-Jan	Inventory	936.00
	Accounts Payable		936.00
13-Jan	Accounts Receivable	1,134.00
	Sales		1,134.00
13-Jan	Cost of merchandise sold	733.00
	Inventory		733.00
20-Jan	Inventory	930.00
	Accounts Payable		930.00
27-Jan	Accounts Receivable	990.00
	Sales		990.00
27-Jan	Cost of merchandise sold	594.00
	Inventory		594.00

Answer d	Amount $
Sales	2,820.00
Less: Cost of goods sold	1,762.00
Gross profit	1,058.00