# Vaughn Company, which uses a periodic inventory system, had a beginning inventory on May 1, of 400 units of Product

## Question:

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 Sales
May 6 375 units at \$9 May 4 275 units
14 250 units at \$10 8 300 units
21 300 units at \$11 22 400 units
28 425 units at \$13 24 225 units
1,350 1,200

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 = \$_________. Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...

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Related Book For

## Accounting What the Numbers Mean

ISBN: 978-0078025297

10th edition

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele

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