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

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 Sold
3. Accumulated Depreciation
4. Merchandise Inventory
5. Sales Returns and Allowances
6. H. Denton, Drawing
7. Freight-out
8. Sales Discounts
9. JInterest Expense
10. H. Denton, Capital

 

--------------------------------------------------------------------------------

 

 

 

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

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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 …

    • 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 …