Financial Accounting Calculation Questions - Test II Purchase 2: Procured an additional 150 units at a unit cost of $12 on the 15th of the month. Purchase 3: Expanded their inventory with 100 units at a unit cost of $14 on the 25th of the month. Compute the moving average cost after each purchase, adhering to the company's policy, and determine the total cost of the ending inventory at the conclusion of the month. Question - Units of Production Method A technology company invests in a cutting-edge server with an expected total processing capacity of 500,000 operations. In the first operational year, it handles 100,000 operations, and the processing demand increases by 20% annually. If the server costs $600,000, calculate the depreciation using the units of production method for the first three operational years. Question - Provide 3 situations in which the Specific Identification Method proves effective for inventory valuation. Also, select 1 of these scenarios and provide in-depth explanations to illustrate the advantages of utilizing Specific Identification Method. Question - Explain the principle behind FIFO inventory method. How does it operate in terms of the chronological flow of goods through the inventory, and what is the underlying rationale for recognizing the cost of goods sold (COGS) and ending inventory based on the order of purchase? Question - Explain the fundamental concept behind the weighted average method for inventory valuation. List 5 advantages and disadvantages of using the weighted average method.