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Week Three Exercise Assignment Q1-7




Question;ACCONTING ASS WEEK 3Week Three Exercise AssignmentInventory;Week Three;Exercise AssignmentInventory;1. Specific identification method. Boston;Galleries uses the specific identification method for inventory valuation.;Inventory information for several oil paintings follows.;Painting;Cost;1/2 Beginning inventory Woods $11,000;4/19 Purchase Sunset 21,800;6/7 Purchase Earth 31,200;2.;Inventory valuation methods: basic computations.;The January;beginning inventory of the White Company consisted of 300 units costing $40;each. During the first quarter, the company purchased two batches of goods: 700;Units at $44 on February 21 and 800 units at $50 on March 28. Sales during the;first quarter were 1,400 units at $75 per unit.;3.;Perpetual inventory system: journal entries. At the beginning of 20X3, Beehler;Company implemented a computerized perpetual inventory system. The first;transactions that occurred during 20X3 follow:? 1/2/20X3 Purchases on account: 500 units @ $4;= $2,000;? 1/15/20X3 Sales on account: 300 units @ $8.50;= $2,550;? 1/20/20X3 Purchases on Account: 200 units @ $5;= $1,000;?;4.;Inventory valuation methods: computations and concepts. Wave Riders Surfboard;Company began business on January 1 of the current year. Purchases of surfboards;were as follows:1/3: 100 boards @ $125;3/17: 50 boards @ $130;5/9: 246 boards @ $140;7/3: 400 boards @ $150;10/23: 74 boards @ $160;5.;Depreciation methods.;Betsy Ross;Enterprises purchased a delivery van for $30,000 in January 20X7. The van was;estimated to have a service life of 5 years and a residual value of $6,000. The;company is planning to drive the van 20,000 miles annually. Compute;depreciation expense for 20X8 by using each of the following methods:6.;Depreciation computations. Alpha Alpha Alpha, a college fraternity, purchased a;new heavy-duty washing machine on January 1, 20X3. The machine, which cost;$1,000, had an estimated residual value of $100 and an estimated service life;of 4 years (1,800 washing cycles).;7.;Depreciation computations: change in estimate. Aussie Imports purchased a;specialized piece of machinery for $50,000 on January 1, 20X3. At the time of;acquisition, the machine was estimated to have a service life of 5 years;(25,000 operating hours) and a residual value of $5,000. During the 5 years of;operations (20X3 - 20X7), the machine was used for 5,100, 4,800, 3,200, 6,000;and 5,900 hours, respectively.


Paper#38380 | Written in 18-Jul-2015

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