Please answer the following Accountant questions;Inventory;1. Specific identification method. Boston Galleries uses the specific identification method for inventory valuation. Inventory information for several oil paintings follows.;Woods and Moon were sold during the year for a total of $35,000. Determine the firm?s;a. cost of goods sold.;b. gross profit.;c. ending inventory.;2. Inventory valuation methods: basic computations. The January beginning inven tory 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. The White Company uses a periodic inventory system. Using the White Company data, fill in the following chart to compare the results obtained under the FIFO, LIFO, and weighted-average inventory methods.;Goods available for sale;Ending inventory, March 31;3. Perpetual inventory system: journal entries. At the beginning of 20X3, Beehler Company implemented a computerized perpetual inventory system. The first transactions tha t occurred during 20X3 follow;? 1/2/20X3 Purchases on account: 500 units @ $6 = $3,000;? 1/15/20X3 Sales on account: 300 units @ $8.50 = $2,550;? 1/20/20X3 Purchases on Account: 200 units @ 5 = $1,0 00;? 1/25/20X3 Sales on Account: 300 units @ $8.50 = $2,550;The company president examined the computer-generated journal entries for these transactions and was confused by the absence of a Purchases account.;a. Duplicate the journal entries that would have appeared on the computer printout under FIFO & LIFO;b. Calculate the balance in the firm?s Inventory account under each method.;c. Briefly explain the absence of the Purchases account to the company president.;4. Inventory valuation methods: computations and concepts.;Wild Riders Surfboard Company began business on January 1 of the current year. Purchases of surfboards were as follows;Wild Riders sold 400 boards at $250 per board on the dates listed below. The company uses a perpetual inventory system.;Instructions;a. Calculate cost of goods sold, ending inventory, and gross profit under each of the following inventory valuation methods;? First-in, first-out;? Last-in, first-out;? Weighted average;b. Which of the three methods would be chosen if management?s goal is to;(1) produce an up-to-date inventory valuation on the balance sheet?;(2) show the lowest net income for tax purposes?;5. Depreciation methods. Mike Davis Enterprises purchased a delivery van for $4 0,000 in January 20X7. The van was estimated to have a service life of 5 years and a resid ual 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;a. Units-of-output, assuming 17,000 miles were driven during 20X8;b. Straight-line;c. Double-declining-balance;6. Depreciation computations. Alpha Alpha Alpha, a college fraternity, purchased a new heavy-duty washing machine on January 1, 20X3. The machine, which cost $2,000, had an estimated residual value of $100 and an estimated service life of 4 years (1,800 washing cycles). Calculate the following;a. The machine?s book value on December 31, 20X5, assuming use of the straight-line depreciation method;b. Depreciation expense for 20X4, assuming use of the units-of-output depreciation method. Actual washing cycles in 20X4 totaled 500.;c. Accumulated depreciation on December 31, 20X5, assuming use of the double-declining-balance depreciation method.;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.;Instructions;a. Compute depreciation for 20X3 - 20X7 by using the following methods: straight line, units of output, and double-declining-balance.;b. On January 1, 20X5, management shortened the remaining s ervice life of the machine to 15 months. Assuming use of the straight-line method, compute the company?s depreciation expense for 20X5.;c. Briefly describe what you would have done differently in part (a) if Aussie Imports had paid $47,800 for the machinery rather than $50,000 In addition, assume that the company incurred $800 of freight charges $1,400 for machine setup and testing, and $300 for insurance during the first year of use.
Paper#76783 | Written in 18-Jul-2015Price : $22