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MBA560 Financial and Managerial Accounting Module 3 Test (2 Problems)

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Question;Saint Leo University (Graduate;Business Studies);MBA560 Financial and Managerial;Accounting;Module 3 Test;Problem 1.;Maple Company started the year with no inventory. During the year, it;purchased two identical inventory items at different times. The first unit cost;$800 and the second, $700. One of the items was sold during the year.;Required;Based on this information, how much product cost would be allocated to;cost of goods sold and ending inventory, assuming use of;a. LIFO;b. FIFO;c. Weighted average;Problem 2.;Teague Company purchased a new machine on January 1, 2012, at a cost of;$150,000. The machine is expected to have an eight-year life and a $15,000;salvage value. The machine is expected to produce 675,000 finished products;during its eight-year life. Smith produced 70,000 units in 2012 and 110,000;units during 2013.;Required;1) Determine the amount of depreciation expense to be recorded on the;machine for the years 2012 and 2013 under each of the following methods;a) Straight-line method;b) Units of production method;c) Double-declining balance method

 

Paper#37680 | Written in 18-Jul-2015

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