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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: accounting
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
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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