Q2: (A) AI 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 Inventory 30 8 240 15 Purchases 25 11 275 24 Purchases 35 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 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 Inventory 30 8 240 15 Purchases 25 11 275 24 Purchases 35 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 And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 1PB: FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a...

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