Can i have some help with the following problem set?

1. In a perpetual average cost system: A. A new weighted-average unit cost is calculated each time additional units are purchased. B. The cost allocated to ending inventory is generally the same as it would be in a periodic inventory system. C. The moving-average unit cost is determined following each sale. D. The average is determined by dividing the total number of units sold by the cost of units purchased during the period. 2. In a period when costs are rising and inventory quantities are stable, the inventory method that would result in the highest ending inventory is: A. Weighted average. B. Moving average. C. FIFO. D. LIFO. 3. Walker TV and Appliance reported the following in its 2016 financial statements: Sales Cost of goods sold: Inventory, January 1 Net purchases Goods available for sale Inventory, December 31 Cost of goods sold Gross profit 2016 $420,000 82,000 340,000 422,000 86,000 336,000 $ 84,000 1 Walker's 2016 gross profit ratio is: A. 25% B. 19% C. 20% D. None of these is correct 4. Gains on the cash sales of fixed assets: A. B. C. D. Are the excess of the book value over the cash proceeds. Are part of cash flows from operations. Are reported on a net-of-tax basis if material. Are the excess of the cash proceeds over the book value of the assets sold. 5. A change from the straight-line method to the sum-of-years'-digits method of depreciation is handled as: A. A retrospective change back to the date of acquisition as though the current estimated life had been used all along. B. A cumulative adjustment to income in the current year for the difference in depreciation under the new versus old useful life estimate. C. A prospective change from the current year through the remainder of its useful life. D. None of these answer choices are correct. 6. Cunningham Enterprises purchased equipment for $72,000 on January 1, 2016. The equipment is expected to have a five-year life and a residual value of $6,000. Using the straight-line method, the book value at December 31, 2016, would be: A. B. C. D. $13,200. $51,600. $58,800. $52,800. 2 Problems / Essay Questions 1. The Lewis Company's inventory at December 31, 2016, was $325,000 based on a physical count priced at cost, and before any necessary adjustment for the following: Merchandise costing $30,000, shipped f.o.b. shipping point from a vendor on December 30, 2016, was received on January 5, 2017. Merchandise costing $22,000, shipped f.o.b. destination from a vendor on December 28, 2016, was received on January 3, 2017. Merchandise costing $38,000 was shipped to a customer f.o.b. destination on December 28, arrived at the customer's location on January 6, 2017. Merchandise costing $12,000 was being held on consignment by Taylor Company. What amount should Lewis Company report as inventory in its December 31, 2016, balance sheet? 3 2. Demich Clock Co. started 2016 with $94,000 of merchandise inventory on hand. During 2016, $400,000 in merchandise was purchased on account with credit terms of 1/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Demich paid freight charges of $7,500. Merchandise with an invoice amount of $5,000 was returned for credit. Cost of goods sold for the year was $380,000. Demich uses a perpetual inventory system. Assuming Demich uses the gross method to record purchases, what is the cost of goods available for sale? 3, 4, 5 - Moore Corp. uses the periodic inventory system. During its first year of operations, Moore made the following purchases (listed in chronological order of acquisition **): 40 units at $100 (** purchased first) 70 units at $80 (** purchased second) 170 units at $60 (** purchased third) 3. Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year. P3: Ending inventory using the average cost method (rounded) is: 4 4. 4. Moore uses the periodic inventory system. During its first year of operations, Moore made the following purchases (listed in chronological order of acquisition): 40 units at $100 70 units at $80 170 units at $60 Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year. P4. Ending inventory using the FIFO method is: 5. Moore uses the periodic inventory system. During its first year of operations, Moore made the following purchases (listed in chronological order of acquisition): 40 units at $100 70 units at $80 170 units at $60 Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year. P5. Ending inventory using the LIFO method is: 5 6. Inventory records for Parker's Chemicals revealed the following: March 1, 2016, inventory: 1,000 gallons @ $7.20 = $7,200 Purchases: Mar. 10 600 gals @ $7.25 Mar. 16 800 gals @ $7.30 Mar. 23 600 gals @ $7.35 Sales: Mar. 5 Mar. 14 Mar. 20 Mar. 26 400 gals 700 gals 500 gals 700 gals P6. Ending inventory assuming LIFO in a perpetual inventory system would be: 7. Cutter Enterprises purchased equipment for $72,000 on January 1, 2016. The equipment is expected to have a five-year life and a residual value of $6,000. Using the sum-of-the-years'-digits method, depreciation for 2016 and book value at December 31, 2016, would be: 8. Cutter Enterprises purchased equipment for $72,000 on January 1, 2016. The equipment is expected to have a five-year life and a residual value of $6,000. Using the sum-of-the-years'-digits method, depreciation for 2017 and book value at December 31, 2017, would be: 6 9. On June 30, 2016, Presto Equipment purchased a precision laser-guided steel punch that has an expected capacity of 300,000 units and no residual value. The cost of the machine was $450,000 and is to be depreciated using the units-of-production method. During the six months of 2016, 24,000 units of product were produced. At the beginning of 2017, engineers estimated that the machine can realistically be used to produce only another 230,000 units. During 2017, 70,000 units were produced. Presto would report depreciation in 2016 of: 10. DiMarco Corporation purchased equipment on January 1, 2014, for $200,000. The company estimated the equipment would have a useful life of 10 years with a $20,000 residual value. DiMarco uses the straight-line depreciation method. Early in 2016, DiMarco reassessed the equipment's condition and determined that its total useful life would be only six years in total and that it would have no salvage value. How much would DiMarco report as depreciation on this equipment for 2016? 7