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Question - Flounder Company sells one product. Presented below is information for January for Flounder Company.
Jan. 1 Inventory 104 units at $5 each
4 Sale 79 units at $8 each
11 Purchase 145 units at $6 each
13 Sale 115 units at $9 each
20 Purchase 162 units at $6 each
27 Sale 107 units at $10 each
Flounder uses the FIFO cost flow assumption. All purchases and sales are on account.
Required - Assume Flounder 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 110 units.
Use the following information to determine the ending cash balance to be reported on the month ended June 30 cash budget.
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