Q2: (A) AI Ealah Co. uses a periodic inventory system. Its records show the following for the month of May, in which 65 units were.sold. Date Units Total Cost |Details May 1 Inventory Purchases 25 Purchases 35 Unit Cost 30 240 15 11 275 24 12 420 Total 90 935 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: (A) AI Ealah Co. uses a periodic inventory system. Its records show the following for the month of May, in which 65 units were.sold. Date Units Total Cost |Details May 1 Inventory Purchases 25 Purchases 35 Unit Cost 30 240 15 11 275 24 12 420 Total 90 935 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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