Davis Company Uses the Perpetual Inventory System and the FIFO

Essay

Davis Company uses the perpetual inventory system and the FIFO inventory costing method. All purchases and sales were cash transactions. The records reflected the following for January, 20X2 $$\begin{array} { | l | r | r | } \hline & \text { Units } & \text { Unit Cost } \\\hline \text { Beginning Inventory } & 100 & \$ 1.00 \\\hline \text { Purchase, January 6 } & 200 & 1.20 \\\hline \text { Sale, January 10 (at \$2.40 per unit) } & 110 & \\\hline \text { Purchase, January 14 } & 100 &1.30 \\\hline \text { Sale, January 29 (at \$2.60 per unit) } & 170 \\\hline\end{array}$$ Determine the following $$\begin{array} { | l | l | } \hline \text { A. } & \text { 20X2 goods available for sale } \\\hline \text { B. } & 20X2 \text { ending inventory } \\\hline \text { C. } & 20X 2 \text { cost of goods sold } \\\hline \text { D. } & \text { Prepare the journal entries for January } 6 \text { and } 10 . \\\hline\end{array}$$