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1) Vaughn Company, which uses a periodic inventory system, had a beginning inventory on May 1, of 400 units of Product A at a cost of $7 per unit. During May, the following purchases and sales were made.
Purchases May 6 ——–375 units at $9 May 14——– 250 units at $10 May 21 ——- 300 units at $11 May 28 ——- 452 units at $13 —————- 1350 ———-
Sales May 4 ——— 275 units May 8 ——— 300 units May 22——– 400 units May 24 ——– 225 units —————–1200—-
Instructions: Compute the May 31 ending inventory and May cost of goods sold under (a) Average Cost, (b) FIFO, and (c) LIFO. Provide appropriate supporting calculations.
(a) Average – Ending Inventory = $_________; Cost of Goods Sold = $_________.
(b) FIFO – Ending Inventory = $_________; Cost of Goods Sold = $_________.
(c) LIFO – Ending Inventory = $_________; Cost of Goods Sold = $_________.
Part 2 Which of the following accounts should be closed with a debit or a credit to Income Summary at the end of the fiscal year? If it is not closed to Income
Summary, mark as n/a.
1. Sales 2. Cost of Goods Sold3. Accumulated Depreciation4. Merchandise Inventory5. Sales Returns and Allowances6. H. Denton, Drawing 7. Freight-out8. Sales Discounts9. JInterest Expense10. H. Denton, Capital
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Please help me solve the missing amounts. 1)”All three are related because they are from the same business.” —- This threw me off… please help. Beginning of the year Total Assets = $85,000 Total Liabilities = ??? Total Owner’s Equity = 35,000 End of the Year Total Assets = $90,000 Total Liabilities = 40,000 Total Owner’s Equity = ??? Owner’s Equity Changes During the year Investments = $12,000 Drawings = 20,000 Revenues = 80,000 Expenses = ??? —————————————… 2)Calculate B. Petry company’s 2010 net income. B. Petry, Capital—January 1, 2010 = $125,000 B. Petry, Capital—December 31, 2010 = 160,000 Petry investments during 2010 = 20,000 Petry withdrawals during 2010 = 38,000
