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Accounting Problems

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Question;Problem 1. Maple Company started the year with no inventory. During the year, it purchasedtwo 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 andending inventory, assuming use of:a. LIFOb. FIFOc. Weighted averageCost of goods soldLIFOFIFOWeighted AverageEnding inventoryProblem 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. Themachine is expected to produce 675,000 finished products during its eight-year life. Smithproduced 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 years2012 and 2013 under each of the following methods:2012a) Straight-line methodb) Units of production methodc) Double-declining balance method1. What documentation issued by a bank increases a company's checking account balance at the bank?A) An account invoiceB) A debit memoC) A credit memoD) A certified check2. Martin Company has no beginning inventory. Martin purchased 500 units of inventory that cost \$5.00 each. At a later date the company purchased an additional 700 units of inventory that cost \$6.00 each. Martin sold 900 units of inventory for \$8.00. If Martin uses FIFO cost flow method, the amount of gross margin appearing on the income statement will be:A) \$2,300B) \$6,200C) \$1,800D) \$2,000

Paper#42748 | Written in 18-Jul-2015

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