Vaughn Company, which uses a periodic inventory system

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Description

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

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