1. Castle TV, Incorporated purchased 2,500 monitors on January 5 at a per-unit cost of $203, and another 2,500 units on January 31 at a per-unit cost of $290. In the period from February 1 through year-end, the company sold 4,400 units of this product. At year-end, 600 units remained in inventory. Assume that Castle TV, Incorporated uses the LIFO flow assumption. The cost of the 600 units in the year-end inventory is:

• $121,800.

• $295,800.

• $147,900.

• $174,000.

2. On April 30, Year 1, Tilton Products purchased machinery for $55,000. The useful life of this machinery is estimated at 8 years, with an $5,000 residual value. Tilton uses a calendar year-end for financial reporting.

Assume that in its financial statements, Tilton Products uses straight-line depreciation and rounds depreciation for fractional years to the nearest month. Depreciation expense recognized on this machinery in Year 1 and Year 2 will be:

• $3,333 in Year 1 and $6,250 in Year 2.

• $2,500 in Year 1 and $6,250 in Year 2.

• $4,167 in Year 1 and $6,250 in Year 2.

• $6,250 in Year 1 and $6,250 in Year 2.

3.

On April 30, Year 1, Tilton Products purchased machinery for $44,000. The useful life of this machinery is estimated at 8 years, with an $4,000 residual value. Tilton uses a calendar year-end for financial reporting.

Assume that in its financial statements, Tilton Products uses the 150%-declining-balance method and the half-year convention. Depreciation expense in Year 1 and Year 2 will be:

• $4,125 in Year 1 and $7,477 in Year 2.

• $7,500 in Year 1 and $6,844 in Year 2.

• $8,250 in Year 1 and $8,250 in Year 2.

• $8,250 in Year 1 and $7,477 in Year 2.