Accounting Question

accounting case study and need support to help me learn.

look in the file
Requirements: 2000-2500
Assignment (2)
Deadline: Saturday 11/11/2023 @ 23:59
For Instructor’s Use only
The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism.
Submissions without this cover page will NOT be accepted.
Assignment Question(s): (Marks: 15)
Question 1: (5 Marks)
During June, the following changes in inventory took place:
June 1 Balance 1,400 units @ SR 24
14 Purchased 900 units @ 36
24 Purchased 700 units @ 30
8 Sold 400 units @ 50
10 Sold 1,000 units @ 40
29 Sold 500 units @ 44
Perpetual inventories are maintained in units only.
What is the cost of the ending inventory under the following methods? (Show calculations.)
(a) FIFO.
(b) Average Cost.
Question 2: (5 Marks)
A Company began operations in 2020 and determined its ending inventory at cost and at a LCNRV at December 31, 2020, and December 31, 2021. This information is presented below.
Cost Net Realizable Value
31/12/20 SR 520,000 SR 485,000
31/12/21 615,000 585,000
(a) Prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming that the inventory is recorded at LCNRV, using a perpetual inventory system and the cost-of-goods-sold method.
(b) Prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming that the inventory is recorded at cost, using a perpetual system and the loss method.
(c) Which of the two methods above provides the higher net income in each year?
Question 3: (5 Marks)
On March 1, a Company began construction of a small building. The following expenditures were incurred for construction:
March 1 SR 75,000 April 1 SR 74,000
0,000 0,000
The building was completed and occupied on July 1. To help pay for construction SR50,000 was borrowed on March 1 on a 12%, three-year note payable. The only other debt outstanding during the year was a SR500,000, 10% note issued two years ago.
(a) Calculate the weighted-average accumulated expenditures.
(b) Calculate avoidable interest.

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