Vaughn Company, which uses a periodic inventory system

# Vaughn Company, which uses a periodic inventory system

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 IncomeSummary, mark as n/a.1. Sales 2. Cost of Goods Sold3. Accumulated Depreciation4. Merchandise Inventory5. Sales Returns and Allowances6. H. Denton, Drawing 7. Freight-out8. Sales Discounts9. JInterest Expense10. H. Denton, CapitalPlease 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 Owners Equity = 35,000End of the Year Total Assets = \$90,000 Total Liabilities = 40,000 Total Owners Equity = ???Owners Equity Changes During the year Investments = \$12,000 Drawings = 20,000 Revenues = 80,000 Expenses = ???2)Calculate B. Petry companys 2010 net income.B. Petry, CapitalJanuary 1, 2010 = \$125,000 B. Petry, CapitalDecember 31, 2010 = 160,000 Petry investments during 2010 = 20,000