Al Falah Co. uses a periodic inventory system. Its records show the following for the month of May, in which 65 units were sold. Date Details Units Unit Cost Total Cost May 1 15 24 Inventory Purchases Purchases Total 30 25 35 90 8 11 12 240 275 420 935 Instructions : Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods. Prove the amount allocated to cost of goods sold under each method. (B): In its first month of operations, Al Hamd Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $7, and (3) 200 units at $9.Assuming there are 360 units on hand, compute the cost of the ending inventory under the average-cost method.
Q2:
- Al Falah Co. uses a periodic inventory system. Its records show the following for the month of May, in which 65 units were sold.
|
Date |
Details |
Units |
Unit Cost |
Total Cost |
|
May 1 15 24 |
Inventory Purchases Purchases Total |
30 25 35 90 |
8 11 12 |
240 275 420 935 |
Instructions :
Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods. Prove the amount allocated to cost of goods sold under each method.
(B):
In its first month of operations, Al Hamd Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $7, and (3) 200 units at $9.Assuming there are 360 units on hand, compute the cost of the ending inventory under the average-cost method.
Q3:
The worksheet of the Ford Motor service Company LLC as follows.
Ford Motor service Company LLC
Worksheet (partial) for the year ended December 31, 2019
|
Account Title/Ledger Balance |
Adjusted |
|
|
Debit |
Credit |
|
|
Cash |
56000 |
|
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|
64300 |
|
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Supplies |
23000 |
|
|
Prepaid Insurance |
14500 |
|
|
Equipment |
660000 |
|
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Notes Payable |
|
235400 |
|
Accounts Payable |
|
57000 |
|
Capital |
|
420000 |
|
Drawings |
15000 |
|
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Service Revenue |
|
160400 |
|
Salaries Expenses |
24000 |
|
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Rent Expenses |
16000 |
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|
872800 |
872800 |
Instruction
- Journalize the closing entries at December 31, 2019
Post the closing entries to “Income Summary” and “Capital” by using “T” accounts
(a)
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Ref. |
Debit |
Credit |
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(b). “T” Accounts Income Summary |
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Capital |
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