Harding Systems, Inc. uses a periodic inventory system. The purchases of a particular product during the year are shown below: Date Purchased Sold Balance Units Units Cost Total Units Units Cost COGS Units Units Cost Total Jan. 1 1100 $ 8 $8800 Feb. 7 1500 $9 $13500 July 10 Nov. 25 1000 $11 $11000 Dec. 31 On July 10 Harding Systems, Inc. sold 1600 units. At December 31 the ending inventory consisted of 2000 units. Refer to the above data.

i) Compute for the cost of goods solds in the current year based on LIFO method of inventory valuation.

ii)Compute the cost of ending inventory bsed on the LIFO method of inventory valuation.

iii)Compute cost of goods sold for the current year based on the FIFO method of inventory valuation.

iv)) Compute the cost of the ending inventory based on the FIFO method of inventory valuation.

v) Compute the cost of goods sold for the current year based on the average- cost method of inventory valuation.

b) An asset which costs $18,800 and has accumulated depreciation of $6,000 is sold for $11,600. What amount of gain or loss will be recognized when the asset is sold?

c) If the 150% declining balance method is being used and an asset has a useful life of 20 years what is the depreciation rate?

d) Name a tangible asset whose value is not subject to depreciation.

e) On January 1, 2009, Tilton Products purchased machinery for $88,000. The useful life of this machinery is estimated at 8 years, with an $8,000 residual value. Refer to the above data to solve i, ii, and iii.

i) Assume that in its financial statements, Tilton Products uses straight-line depreciation. Calculate depreciation expense recognized on this machinery in 2009 and 2010 will be: Depreciation expense in 2009: Depreciation expense in 2010:

ii) Calculate book value in 2009 and 2010 using straight line depreciation Book value in 2009: Book value in 2010:

iii) Assume that in its financial statements, Tilton Products uses the 200%-declining-balance method. Calculate depreciation expense in 2009. Depreciation expense in 2009:

f) Clark Imports sold a depreciable plant asset for cash of $35,000. The accumulated depreciation amounted to $70,000, and a loss of $5,000 was recognized on the sale. Under these circumstances, the original cost of the asset must have been:

g) Mayer Instrumentation sold a depreciable asset for cash of $300,000. The original cost of the asset was $1,200,000. Mayer recognized a gain of $45,000 on the sale. What was the amount of accumulated depreciation on the asset at the time of its sale?

h) Dietz owned a delivery van with a book value of $2,000 (old van). It traded this old van in on a new one which cost $16,000 (Price=cost of the new van). The dealer allowed Dietz a trade-in allowance of $3,500 on the old van, and Dietz paid the remainder in cash. Compute the following:

i) The amount of cash Dietz must pay to purchase the new van.

ii) The gain on disposal of old van to be reported in Dietzs financial statement