# 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 â Ending Inventory = \$_________; Cost of Goods Sold = \$_________.(b) FIFO â Ending Inventory = \$_________; Cost of Goods Sold = \$_________.(c) LIFO â 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, Capital——————————————————————————–Please 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 Owner’s Equity = 35,000End of the Year Total Assets = \$90,000 Total Liabilities = 40,000 Total Owner’s Equity = ???Owner’s Equity Changes During the year Investments = \$12,000 Drawings = 20,000 Revenues = 80,000 Expenses = ???—————————————…2)Calculate B. Petry company’s 2010 net income.B. Petry, CapitalâJanuary 1, 2010 = \$125,000 B. Petry, CapitalâDecember 31, 2010 = 160,000 Petry investments during 2010 = 20,000