Instructions compute the cost of ending inventory and cost

Assignment Help Accounting Basics

Reference no: EM13485437

1/ Bob Company has the following balances on January 31, 2013:

Cash $6,000

Supplies 900

Prepaid Insurance 4,800

Equipment 6,000

Accumulated Depreciation - Equipment 500

Accounts Payable 1,800

Notes Payable 2,600

Bob, Capital 9,000

Bob, Drawings 1,200

Service Revenue 6,000

Rent Expense 1,000

All of the accounts have normal balances. Additional information for the month of January resulted in the following adjusting entries:

Date	Account	Debit	Credit
January 31	Supplies Expense	300
	Supplies		300

January 31	Insurance Expense	400
	Prepaid Insurance		400

January 31	Depreciation Expense - Equipment	100
	Accumulated Depreciation - Equipment		100

January 31	Utilities Expense	200
	Accounts Payable		200

Instructions: Prepare in journal form, without explanation, the end of month closing entries for Bob Company.

2/The following information is available for Bob Company:

Beginning inventory 300 units at $3

First purchase 800 units at $4

Second purchase 100 units at $4.60

Assume that Bob Company uses a periodic inventory system and that there are 400 units left at the end of the month.

Instructions: Compute the cost of ending inventory and Cost of Goods Sold under each of the following methods: LIFO, FIFO, Average Cost.

a) LIFO Ending Inventory Cost =

COGS =

(b) FIFO Ending Inventory Cost =:

COGS =

Reference no: EM13485437

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