Bonita Company sells one product. Presented below is information for January for Bonita Company. Jan. 1 4 11 13 20 27 Inventory 109 units at $4 each Sale 85 units at $8 each Purchase 137 units at $7 each 109 units at $9 each 151 units at $7 each 93 units at $11 each Sale Purchase Sale

Bonita Company sells one product. Presented below is information for January for Bonita Company. Jan. 1 4 11 13 20 27 Inventory 109 units at $4 each Sale 85 units at $8 each Purchase 137 units at $7 each 109 units at $9 each 151 units at $7 each 93 units at $11 each Sale Purchase Sale

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

**Compute Gross Profit Using the Periodic System**

To calculate the gross profit using the periodic inventory system, enter the value in the space provided below.

**Gross Profit:** $ [________]

*Instructions: Calculate and fill in the gross profit based on your inventory data using the periodic system of inventory accounting.*

Bonita Company sells one product. Presented below is information for January for Bonita Company.

**Transactions:**

- **Jan. 1**
- **Inventory**: 109 units at $4 each

- **Jan. 4**
- **Sale**: 85 units at $8 each

- **Jan. 11**
- **Purchase**: 137 units at $7 each

- **Jan. 13**
- **Sale**: 109 units at $9 each

- **Jan. 20**
- **Purchase**: 151 units at $7 each

- **Jan. 27**
- **Sale**: 93 units at $11 each

**Additional Information:**

Bonita uses the FIFO (First-In, First-Out) cost flow assumption. All purchases and sales are on account.

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