Windsor Company sells one product. Presented below is information for January for Windsor Company. Jan. 1 Inventory 108 units at $5 each
4 Sale 87 units at $8 each
11 Purchase 150 units at $7 each
13 Sale 123 units at $9 each
20 Purchase 168 units at $7 each
27 Sale 106 units at $11 each

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

Required:
a. Assume Bramble 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.
b. Compute gross profit using the periodic system.
c. Assume Bramble uses a perpetual system. Prepare all necessary journal entries.
d. Compute gross profit using the perpetual system.

a. See part a of the attached excel file for the journal entries under a periodic system.

b. Gross Profit = $1,050

c. See part b of the attached excel file for the journal entries under a periodic system.

d. Gross Profit = $973

Explanation:

a. Assume Bramble 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.

Note: See part a of the attached excel file for the journal entries under a periodic system.

A periodic system is a method of inventory under which cost of goods sold is calculated at the end of a specific time period such week, month, quarter, or year. In this question, the specific time period is month.

Units in ending inventory = Beg Inventory units + Units purchased - Units sold = 108 + (150 + 168) - (87 + 123 + 106) = 110 units

When FIFO method is used with a periodic system, goods purchased first are sold first.

Therefore, ending inventory in this case will be 106 units purchased last on Jan 20 at $6 per unit and 4 units from the purchase of Jan 20 at $7 each.

b. Compute gross profit using the periodic system.

Gross Profit = Sales revenue - Cost of goods sold = Sum of all sales during the month - Cost of goods sold at the end of the month

From the journal entries in the part a of the attached excel file, we have:

Gross Profit = ($696 + 1,107 + $1,166) - $1,464 = $2,969 - $1,464 = $1,050

c. Assume Bramble uses a perpetual system. Prepare all necessary journal entries.

Note: See part b of the attached excel file for the journal entries under a periodic system.

A perpetual  system is a method of inventory under which cost of goods sold for each sales is calculated separately.

d. Compute gross profit using the perpetual system.

Gross Profit = Sales revenue - Cost of goods sold = Sum of all sales during the month - Sum of all cost of goods sold during the month

From the journal entries in the part b of the attached excel file, we have:

Gross Profit =

Gross Profit = ($696 + $1,107 + $1,166) - ($435 + $819 + $742)= $2,969 - $1,996 = $973

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best of luck,

the divergent

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.