E8-9B (Periodic versus Perpetual Entries) Shin Company sells one product. Presented below is information for January for Shin Company.

E8-9B (Periodic versus Perpetual Entries) Shin Company sells one product. Presented below is information

for January for Shin Company.

        Jan. 1 Inventory 300 units at             $10 each

        4 Sale 240 units at                             $16 each

       11 Purchase 450 units at                  $12 each

       13 Sale 360 units at                           $17.50 each

       20 Purchase 480 units at                  $14 each

       27 Sale 300 units at $18 each

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

Instructions

(a) Assume Shin uses a periodic system. Prepare all necessary journal entries, including the end-ofmonth closing entry to record cost of goods sold. A physical count indicates that the ending inventory

for January is 330 units.

(b) Compute gross profit using the periodic system.

(c) Assume Shin uses a perpetual system. Prepare all necessary journal entries.

(d) Compute gross profit using the perpetual system.