CHAPTER 6 XYZ Company buys and sells cabinets and drawers for the last 5 years at their Michigan outlet. XYZ Company the furniture from the wholesaler and then sells the furniture to the customers from their retail outlet at Michigan The following information is for XYZ Company for the month ended July 30 2017. Quantity 50 230 80 40 Date July 1 July 8 July 21 July 27 Description Opening Inventory Purchase Purchase Purchase Sales 350 units XYZ Company uses the periodic method for inventory. Unit Cost 100 76 110 100 Required: (1) Calculate Ending Inventory and Cost of Goods sold, under each of the following methods. (1) LIFO. (2) FIFO. (3) Average cost. Prove the amount allocated to cost of goods sold under the LIFO and FIFO method (2) From your calculations, analyze which method results in (1) The highest ending inventory, and (2) The highest cost of goods sold. CHAPTER 5 Mr. Sajal started business from July 1. His investment was Tk.10,000. The following transactions were completed during July: July-5; Merchandise purchased on account from Sumon TK.2,000, terms 2/10, N/30. July-7; Paid freight Tk. 100 on purchase of July 5. July-9; Credit received from Sumon Tk.150 for merchandise returned. Jul-10; Merchandise sold on account Tk.1200. Terms 1/10, N/30. The cost of the sold merchandise was Tk. 1000. July-12; Merchandise purchased Tk.2,200, terms 2/10, N/30. July-14; Amount paid to Sumon, less discount. July-17; Credit received from supplier Tk.100 for merchandise returned which was purchased on July 12. July-20; Merchandise sold in account Tk.700. Terms N/30. The cost of the sold merchandise was Tk.490. July-21; Amount paid for purchase on account of July 12. July-27; Granted allowance Tk.50 to buyer of July 20 for inferior goods Tk.30. July-30; Amount received from buyer of July 10, Tk.1,200. Required: Journalizes the transactions of July using Perpetual Inventory System. CHAPTER 6 XYZ Company buys and sells cabinets and drawers for the last 5 years at their Michigan outlet. XYZ Company the furniture from the wholesaler and then sells the furniture to the customers from their retail outlet at Michigan The following information is for XYZ Company for the month ended July 30 2017. Quantity 50 230 80 40 Date July 1 July 8 July 21 July 27 Description Opening Inventory Purchase Purchase Purchase Sales 350 units XYZ Company uses the periodic method for inventory. Unit Cost 100 76 110 100 Required: (1) Calculate Ending Inventory and Cost of Goods sold, under each of the following methods. (1) LIFO. (2) FIFO. (3) Average cost. Prove the amount allocated to cost of goods sold under the LIFO and FIFO method (2) From your calculations, analyze which method results in (1) The highest ending inventory, and (2) The highest cost of goods sold.