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Financial & Managerial Accting MBA-560 test 3




Question;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;Cost of goods sold;Ending inventory;LIFO;FIFO;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;2012;2013;a) Straight-line method;b) Units of production method;c) Double-declining balance method


Paper#45433 | Written in 18-Jul-2015

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