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4. Calculate the following, and place the calculated solution on the appropriate line. In all cases, assume the companies that are the subject of the question are US corporations using US GAAP. a. Berful sells a product. It had one item in beginning inventory that cost $90,000, and purchased two more--one for $100,000, and later, one for $110,000. If two of the three items were sold this year, determine the cost of ending inventory under the following cost flow assumptions. FIFO LIFO Weighted Average

4. Calculate the following, and place the calculated solution on the appropriate line. In all cases, assume the companies that are the subject of the question are US corporations using US GAAP. a. Berful sells a product. It had one item in beginning inventory that cost $90,000, and purchased two more--one for $100,000, and later, one for $110,000. If two of the three items were sold this year, determine the cost of ending inventory under the following cost flow assumptions. FIFO LIFO Weighted Average

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4. Calculate the following, and place the calculated solution on the appropriate line. In all cases, assume the companies that are the subject of the question are US corporations using US GAAP. a. Berful sells a product. It had one item in beginning inventory that cost $90,000, and purchased two more--one for $100,000, and later, one for $110,000. If two of the three items were sold this year, determine the cost of ending inventory under the following cost flow assumptions. FIFO LIFO Weighted Average
Transcribed Image Text:4. Calculate the following, and place the calculated solution on the appropriate line. In all cases, assume the companies that are the subject of the question are US corporations using US GAAP. a. Berful sells a product. It had one item in beginning inventory that cost $90,000, and purchased two more--one for $100,000, and later, one for $110,000. If two of the three items were sold this year, determine the cost of ending inventory under the following cost flow assumptions. FIFO LIFO Weighted Average
b. Berful buys a machine for $75,000 on the first day of the year. The machine is expected to have a life of 5 years, and to have a salvage value of $15,000. Calculate the depreciation expense for year two of its life using the following methods. Straight-line method Double-declining balance Sum-of-the-years digits c. Calculate the correct balance of cash resulting from the following data, and place the correct balance on the line below. Balance per bank statement Balance per books Deposits in transit Outstanding checks Interest earned on bank account but not recorded on the books Bank service charge Ending cash balance 4,842.77 3,479.48 1,654.24 3,028.89 8.64 20.00
Transcribed Image Text:b. Berful buys a machine for $75,000 on the first day of the year. The machine is expected to have a life of 5 years, and to have a salvage value of $15,000. Calculate the depreciation expense for year two of its life using the following methods. Straight-line method Double-declining balance Sum-of-the-years digits c. Calculate the correct balance of cash resulting from the following data, and place the correct balance on the line below. Balance per bank statement Balance per books Deposits in transit Outstanding checks Interest earned on bank account but not recorded on the books Bank service charge Ending cash balance 4,842.77 3,479.48 1,654.24 3,028.89 8.64 20.00
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