Normandy Company Has Collected the Following Inventory Data Prior to Preparing

question 110

Essay

Normandy Company has collected the following inventory data prior to preparing financial statements for the month of October. All purchases and sales are on credit.
Assuming the periodic inventory system is used, determine the cost of the ending inventory and cost of goods sold using FIFO. Prepare the appropriate journal entries to record: (A) The October 6 purchase. (B) The October 12 sale. (C) The entries to close the October income statement items to Income Summary. (Assume that sales revenue and the elements of cost of goods sold are the only income statement items.)

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