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1.;Cost of Goods Sold (50 points);Redster Company is a manufacturing firm. Presented below is information concerning one of its products, Ander;Date Transaction Quantity Price/Cost;1/1 Beginning inventory 2,900 \$10;2/12 Purchase 3,300 \$15;3/2 Sale 2,400 \$28;4/18 Purchase 4,500 \$18;5/31 Sale 3,800 \$30;Compute the cost of goods sold under the following situations;Periodic system, FIFO cost flow;Perpetual system, FIFO cost flow;Periodic system, LIFO cost flow;Perpetual system, LIFO cost flow;Periodic system, weighted-average cost flow;Perpetual system, moving-average cost flow;2.;Depreciation Expense (50 points);Valley Corporation purchased a new piece of equipment on June 1, 2011. The cost of this machine was \$325,000. The company estimated that the machine would have a salvage value of \$25,000 at the end of its service life. Its life is estimated at four years and its working hours are estimated at 50,000 hours. Year end is December 31.;Compute the depreciation expense under the following methods. Each of the following should be considered unrelated.;Straight-line depreciation for 2011.;Units of production method for 2011, assuming that machine usage was 13,000 hours.;Sum-of-the-years?-digits for 2012.;Double-declining balance for 2012.

Paper#81645 | Written in 18-Jul-2015

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