Hello,

I'm falling behind in my ACC 205 class at Ashford University. I need Week 3 Guidance Report completed as soon as possible.I need ALL ENTRIES to reflect the months of March & April. The assignmentis to be completed upon course start date which would be theMarch & April columns. I've attached all questions to separate document for the Guidance Report that is in Excel.PLEASE HELP!!!

Chapter 5, Exercise 1 Inventory errors and income measurement. The income statements of Keagle Company for 20X3 and 20X4 follow. 20X3 20X4 Sales $100,000 $109,000 Cost of goods sold 62,000 74,000 Gross profit 38,000 35,000 Expenses 26,000 22,000 Net income $12,000 $ 13,000 A recent review of the accounting records discovered that the 20X3 ending inventory had been understated by $4,000. a. Prepare corrected 20X3 and 20X4 income statements. b. What is the effect of the error on ending owner's equity for 20X3 and 20X4? Chapter 5, Problem 2 Inventory valuation methods: computations and concepts. Wave Riders Surfboard Company began business on January 1 of the current year. Purchases of surfboards were as follows: 1/3: 3/17: 5/9: 7/3: 10/23: 100 boards , $125 50 boards , $130 246 boards , $140 400 boards , $150 74 boards , $160 Wave Riders sold 710 boards at an average price of $250 per board. The company uses a periodic inventory system. Instructions a. Calculate cost of goods sold, ending inventory, and gross profit under each of the following inventory valuation methods: First-in, first-out Last-in, first-out Weighted average b. Which of the three methods would be chosen if management's goal is to (1) produce an up-to-date inventory valuation on the balance sheet? (2) approximate the physical flow of a sand and gravel dealer? (3) report low earnings (for tax purposes) for a separate electronics company that has been experiencing declining purchase prices? Chapter 6, Exercise 2 Depreciation methods. Betsy Ross Enterprises purchased a delivery van for $30,000 in January 20X7. The van was estimated to have a service life of 5 years and a residual value of $6,000. The company is planning to drive the van 20,000 miles annually. Compute depreciation expense for 20X8 by using each of the following methods: a. Units-of-output, assuming 17,000 miles were driven during 20X8 b. Straight-line c. Double-declining-balance Chapter 6, Exercise 3 Depreciation computations. Alpha Alpha Alpha, a college fraternity, purchased a new heavyduty washing machine on January 1, 20X3. The machine, which cost $1,000, had an estimated residual value of $100 and an estimated service life of 4 years (1,800 washing cycles). Calculate the following: a. The machine's book value on December 31, 20X5, assuming use of the straight-line depreciation method b. Depreciation expense for 20X4, assuming use of the units-of-output depreciation method. Actual washing cycles in 20X4 totaled 500. c. Accumulated depreciation on December 31, 20X5, assuming use of the double-decliningbalance depreciation method. Chapter 6, Problem 2 Depreciation computations: change in estimate. Aussie Imports purchased a specialized piece of machinery for $50,000 on January 1, 20X3. At the time of acquisition, the machine was estimated to have a service life of 5 years (25,000 operating hours) and a residual value of $5,000. During the 5 years of operations (20X3220X7), the machine was used for 5,100, 4,800, 3,200, 6,000, and 5,900 hours, respectively. Instructions a. Compute depreciation for 20X3220X7 by using the following methods: straight line, units of output, and double-declining-balance. b. On January 1, 20X5, management shortened the remaining service life of the machine to 20 months. Assuming use of the straight-line method, compute the company's depreciation expense for 20X5. c. Briefly describe what you would have done differently in part (a) if Aussie Imports had paid $47,800 for the machinery rather than $50,000 In addition, assume that the company incurred $800 of freight charges $1,400 for machine setup and testing, and $300 for insurance during the first year of use. Ashford University ACC Guidance Report Week Three LISTEN TO AUDIO/VIDEO EXPLAINING THE GUIDANCE REPORT Account to be changed Original Amount Ch 5 Ex 1 Inventory understated Questions 4,000 YOUR ANSWERS BASED UPON COURSE START DATE 20X3 Sales Cost of goods sold Gross profit Expenses Net income 20X4 Sales Cost of goods sold Gross profit Expenses Net income What is the effect of the error on ending owner's equity for 20X3 and 20X4? Account to be changed Ch 5 Pb 2 Sold Ending Inventory Questions FIFO Sales Purchases Ending inventory Cost of Goods Sold Gross Profit LIFO Sales Purchases Ending inventory Cost of Goods Sold Gross Profit Average Cost Sales Purchases Ending inventory Cost of Goods Sold Gross Profit Which of the three methods would be chosen if management's goal is to: Produce an up-to-date inventory valuation on the balance sheet? Approximate the physical flow of a sand and gravel dealer? Report low earnings (for tax purposes) for a separate electronics company that has been experiencing declining purchase prices? Original Amount 710 160 YOUR ANSWERS BASED UPON COURSE START DATE Account to be changed Ch 6 Ex 2 Purchase price Questions Original Amount 30000 YOUR ANSWERS BASED UPON COURSE START DATE Units-of-output Straight-line Double-declining-balance Account to be changed Ch 6 Ex 3 Cost Original Amount 1000 Questions YOUR ANSWERS BASED UPON COURSE START DATE The machine's book value on December 31, 20X5, assuming use of the straight-line depreciation method Depreciation expense for 20X4, assuming use of the units-ofoutput depreciation method. Actual washing cycles in 20X4 totaled 500. Accumulated depreciation on December 31, 20X5, assuming use of the double-declining-balance depreciation method. Account to be changed Original Amount Ch 6 Pb 2 Machine Part C Cost 50000 47800 YOUR ANSWERS BASED UPON COURSE START DATE Questions Straight line 20X3 20X4 20X5 20X6 20X7 Units-of-output 20X3 20X4 20X5 20X6 20X7 Double Declining Balance 20X3 20X4 20X5 20X6 20X7 On January 1, 20X5, management shortened the remaining service life of the machine to 20 months. Assuming use of the straight-line method, compute the company's depreciation expense for 20X5. Briefly describe what you would have done differently in part (a) if Aussie Imports had paid $47,800 for the machinery rather than $50,000 In addition, assume that the company incurred $800 of freight charges $1,400 for machine setup and testing, and $300 for insurance during the first year of use. Ashford University ACC205 Guidance Report Week Three YELLOW INDICATES ACCOUNT AMOUNTS CHANGED Change Account to: Based Upon Course Start Date Jan - Feb 5,000 Mar-Apr 6,000 May-Jun 7,000 Jul-Aug 8,000 Sept-Oct 9,000 Nov-Dec 10,000 720 150 730 140 740 130 750 120 760 110 770 100 31,000 32,000 33,000 34,000 35,000 36,000 1,100 1,200 1,300 1,400 1,500 1,600 55,000 52,800 60,000 57,800 65,000 62,800 70,000 67,800 75,000 72,800 80,000 77,800 LISTEN TO AUDIO/VIDEO EXPLAINING THE GUIDANCE REPORT Account to be changed Original Amount Ch 5 Ex 1 Inventory understated Questions 4,000 YOUR ANSWERS BASED UPON COURSE START DATE 20X3 100000 58,000 42000 26000 16000 Sales Cost of goods sold Gross profit Expenses Net income 20X4 Sales Cost of goods sold Gross profit Expenses Net income What is the effect of the error on ending owner's equity for 20X3 and 20X4? 109000 78,000 31000 22000 9000 the effect of the error on ending owner's equity for 20X3 is that it is under stated by $4000 and 20X4 is over stated by $4000 Account to be changed Ch 5 Pb 2 Sold Ending Inventory Questions Original Amount 710 160 YOUR ANSWERS BASED UPON COURSE START DATE FIFO Sales Purchases Ending inventory Cost of Goods Sold Gross Profit 177500 125280 24740 100540 76960 LIFO Sales Purchases Ending inventory Cost of Goods Sold Gross Profit 177500 125280 20400 104880 72620 Average Cost Sales Purchases Ending inventory Cost of Goods Sold Gross Profit 177500 125280 23040 102240 75260 Which of the three methods would be chosen if management's goal is to: Produce an up-to-date inventory valuation on the balance sheet? Approximate the physical flow of a sand and gravel dealer? FIFO would be used because units produced first would be sold first, keeping the inventory of current LIFO would be used seeing how newer units placed in front, which are then sold in that order last in is the first to leave Report low earnings (for tax purposes) for a separate electronics company that has been experiencing declining purchase prices? Account to be changed Ch 6 Ex 2 Purchase price Questions FIFO would be used since the older units are priced higher Original Amount 30000 YOUR ANSWERS BASED UPON COURSE START DATE Units-of-output 4080 Straight-line 4800 Double-declining-balance 7200 Account to be changed Ch 6 Ex 3 Cost Original Amount 1000 Questions The machine's book value on December 31, 20X5, assuming use of the straight-line depreciation method Depreciation expense for 20X4, assuming use of the units-ofoutput depreciation method. Actual washing cycles in 20X4 totaled 500. YOUR ANSWERS BASED UPON COURSE START DATE 325 250 Accumulated depreciation on December 31, 20X5, assuming use of the double-declining-balance depreciation method. Account to be changed 875 Original Amount Ch 6 Pb 2 Machine Part C Cost 50000 47800 YOUR ANSWERS BASED UPON COURSE START DATE Questions Straight line 20X3 20X4 20X5 20X6 20X7 9000 9000 9000 9000 9000 20X3 20X4 20X5 20X6 20X7 9180 8640 5760 10800 10620 20X3 20X4 20X5 20X6 20000 12000 7200 4320 1480 Units-of-output Double Declining Balance 20X7 On January 1, 20X5, management shortened the remaining service life of the machine to 20 months. Assuming use of the straight-line method, compute the company's depreciation expense for 20X5. 16200 Briefly describe what you would have done differently in part (a) if Aussie Imports had paid $47,800 for the machinery rather than $50,000 In addition, assume that the company incurred $800 of freight charges $1,400 for machine setup and testing, and $300 for insurance during the first year of use. The exepenses for freight $800 and mcchine set up and testing charges $1400 will be added to machinery and insurance expenses will be shown in profit & loss account Ashford University ACC205 Guidance Report Week Three YELLOW INDICATES ACCOUNT AMOUNTS CHANGED Change Account to: Based Upon Course Start D Jan - Feb Mar-Apr May-Jun 5,000 6,000 7,000 100,000 57,000 43,000 26,000 17,000 100,000 56,000 44,000 26,000 18,000 100,000 55,000 45,000 26,000 19,000 109,000 79,000 30,000 22,000 8,000 109,000 80,000 29,000 22,000 7,000 109,000 81,000 28,000 22,000 6,000 the effect of the error on ending the effect of the error on ending owner's equity for 20X3 is that it is owner's equity for 20X3 is that it is under stated by $5000 and 20X4 is under stated by $6000 and 20X4 is over stated by $5000 over stated by $6000 the effect of the error on ending owner's equity for 20X3 is that it is under stated by $7000 and 20X4 is over stated by $7000 720 150 730 140 740 130 180,000 125,280 23,240 102,040 77,960 182,500 125,280 21,740 103,540 78,960 185,000 125,280 20,240 105,040 79,960 180,000 125,280 19,000 106,280 73,720 182,500 125,280 17,700 107,580 74,920 185,000 125,280 16,400 108,880 76,120 180,000 125,280 21,600 103,680 76,320 182,500 125,280 20,160 105,120 77,380 185,000 125,280 18,720 106,560 78,440 FIFO would be used because units produced first would be sold first, keeping the inventory of current FIFO would be used because units produced first would be sold first, keeping the inventory of current FIFO would be used because units produced first would be sold first, keeping the inventory of current LIFO would be used seeing how LIFO would be used seeing how newer units placed in front, which newer units placed in front, which are then sold in that order last in is are then sold in that order last in is the first to leave the first to leave LIFO would be used seeing how newer units placed in front, which are then sold in that order last in is the first to leave FIFO would be used since the older FIFO would be used since the older FIFO would be used since the older units are priced higher units are priced higher units are priced higher 31,000 32,000 33,000 4,250 4,420 4,590 5,000 5,200 5,400 7,440 7,680 7,920 1,100 1,200 1,300 350 375 400 278 306 333 963 1,050 1,138 55,000 52,800 60,000 57,800 65,000 62,800 10,000 10,000 10,000 10,000 10,000 11,000 11,000 11,000 11,000 11,000 12,000 12,000 12,000 12,000 12,000 10,200 9,600 6,400 12,000 11,800 11,220 10,560 7,040 13,200 12,980 12,240 11,520 7,680 14,400 14,160 22,000 13,200 7,920 4,752 2,128 24,000 14,400 8,640 5,184 2,776 26,000 15,600 9,360 5,616 3,424 18,000 19,800 21,600 The exepenses for freight $800 and The exepenses for freight $800 and The exepenses for freight $800 and mcchine set up and testing charges mcchine set up and testing charges mcchine set up and testing charges $1400 will be added to machinery $1400 will be added to machinery $1400 will be added to machinery and insurance expenses will be and insurance expenses will be and insurance expenses will be shown in profit & loss account shown in profit & loss account shown in profit & loss account Change Account to: Based Upon Course Start Date Jul-Aug Sept-Oct 8,000 9,000 100,000 54,000 46,000 26,000 20,000 100,000 53,000 47,000 26,000 21,000 109,000 82,000 27,000 22,000 5,000 109,000 83,000 26,000 22,000 4,000 the effect of the error on ending the effect of the error on ending owner's equity for 20X3 is that it is owner's equity for 20X3 is that it is under stated by $8000 and 20X4 is over under stated by $9000 and 20X4 is over stated by $8000 stated by $9000 750 120 760 110 187,500 125,280 18,740 106,540 80,960 190,000 125,280 17,240 108,040 81,960 187,500 125,280 15,100 110,180 77,320 190,000 125,280 13,800 111,480 78,520 187,500 125,280 17,280 108,000 79,500 190,000 125,280 15,840 109,440 80,560 FIFO would be used because units produced first would be sold first, keeping the inventory of current FIFO would be used because units produced first would be sold first, keeping the inventory of current LIFO would be used seeing how newer LIFO would be used seeing how newer units placed in front, which are then units placed in front, which are then sold in that order last in is the first to sold in that order last in is the first to leave leave FIFO would be used since the older units are priced higher FIFO would be used since the older units are priced higher 34,000 35,000 4,760 4,930 5,600 5,800 8,160 8,400 1,400 1,500 425 450 361 389 1,225 1,313 70,000 67,800 75,000 72,800 13,000 13,000 13,000 13,000 13,000 14,000 14,000 14,000 14,000 14,000 13,260 12,480 8,320 15,600 15,340 14,280 13,440 8,960 16,800 16,520 28,000 16,800 10,080 6,048 4,072 30,000 18,000 10,800 6,480 4,720 23,400 25,200 The exepenses for freight $800 and The exepenses for freight $800 and mcchine set up and testing charges mcchine set up and testing charges $1400 will be added to machinery and $1400 will be added to machinery and insurance expenses will be shown in insurance expenses will be shown in profit & loss account profit & loss account Nov-Dec 10,000 100,000 52,000 48,000 26,000 22,000 109,000 84,000 25,000 22,000 3,000 the effect of the error on ending owner's equity for 20X3 is that it is under stated by $10000 and 20X4 is over stated by $10000 770 100 192,500 125,280 15,740 109,540 82,960 192,500 125,280 12,500 112,780 79,720 192,500 125,280 14,400 110,880 81,620 FIFO would be used because units produced first would be sold first, keeping the inventory of current LIFO would be used seeing how newer units placed in front, which are then sold in that order last in is the first to leave FIFO would be used since the older units are priced higher 36,000 5,100 6,000 8,640 1,600 475 417 1,400 80,000 77,800 15,000 15,000 15,000 15,000 15,000 15,300 14,400 9,600 18,000 17,700 32,000 19,200 11,520 6,912 5,368 27,000 The exepenses for freight $800 and mcchine set up and testing charges $1400 will be added to machinery and insurance expenses will be shown in profit & loss account LISTEN TO AUDIO/VIDEO EXPLAINING THE GUIDANCE REPORT Account to be changed Original Amount Ch 5 Ex 1 Inventory understated Questions 4,000 YOUR ANSWERS BASED UPON COURSE START DATE 20X3 100000 58,000 42000 26000 16000 Sales Cost of goods sold Gross profit Expenses Net income 20X4 Sales Cost of goods sold Gross profit Expenses Net income What is the effect of the error on ending owner's equity for 20X3 and 20X4? 109000 78,000 31000 22000 9000 the effect of the error on ending owner's equity for 20X3 is that it is under stated by $4000 and 20X4 is over stated by $4000 Account to be changed Ch 5 Pb 2 Sold Ending Inventory Questions Original Amount 710 160 YOUR ANSWERS BASED UPON COURSE START DATE FIFO Sales Purchases Ending inventory Cost of Goods Sold Gross Profit 177500 125280 24740 100540 76960 LIFO Sales Purchases Ending inventory Cost of Goods Sold Gross Profit 177500 125280 20400 104880 72620 Average Cost Sales Purchases Ending inventory Cost of Goods Sold Gross Profit 177500 125280 23040 102240 75260 Which of the three methods would be chosen if management's goal is to: Produce an up-to-date inventory valuation on the balance sheet? Approximate the physical flow of a sand and gravel dealer? FIFO would be used because units produced first would be sold first, keeping the inventory of current LIFO would be used seeing how newer units placed in front, which are then sold in that order last in is the first to leave Report low earnings (for tax purposes) for a separate electronics company that has been experiencing declining purchase prices? Account to be changed Ch 6 Ex 2 Purchase price Questions FIFO would be used since the older units are priced higher Original Amount 30000 YOUR ANSWERS BASED UPON COURSE START DATE Units-of-output 4080 Straight-line 4800 Double-declining-balance 7200 Account to be changed Ch 6 Ex 3 Cost Original Amount 1000 Questions The machine's book value on December 31, 20X5, assuming use of the straight-line depreciation method Depreciation expense for 20X4, assuming use of the units-ofoutput depreciation method. Actual washing cycles in 20X4 totaled 500. YOUR ANSWERS BASED UPON COURSE START DATE 325 250 Accumulated depreciation on December 31, 20X5, assuming use of the double-declining-balance depreciation method. Account to be changed 875 Original Amount Ch 6 Pb 2 Machine Part C Cost 50000 47800 YOUR ANSWERS BASED UPON COURSE START DATE Questions Straight line 20X3 20X4 20X5 20X6 20X7 9000 9000 9000 9000 9000 20X3 20X4 20X5 20X6 20X7 9180 8640 5760 10800 10620 20X3 20X4 20X5 20X6 20000 12000 7200 4320 1480 Units-of-output Double Declining Balance 20X7 On January 1, 20X5, management shortened the remaining service life of the machine to 20 months. Assuming use of the straight-line method, compute the company's depreciation expense for 20X5. 16200 Briefly describe what you would have done differently in part (a) if Aussie Imports had paid $47,800 for the machinery rather than $50,000 In addition, assume that the company incurred $800 of freight charges $1,400 for machine setup and testing, and $300 for insurance during the first year of use. The exepenses for freight $800 and mcchine set up and testing charges $1400 will be added to machinery and insurance expenses will be shown in profit & loss account Ashford University ACC205 Guidance Report Week Three YELLOW INDICATES ACCOUNT AMOUNTS CHANGED Change Account to: Based Upon Course Start D Jan - Feb Mar-Apr May-Jun 5,000 6,000 7,000 100,000 57,000 43,000 26,000 17,000 100,000 56,000 44,000 26,000 18,000 100,000 55,000 45,000 26,000 19,000 109,000 79,000 30,000 22,000 8,000 109,000 80,000 29,000 22,000 7,000 109,000 81,000 28,000 22,000 6,000 the effect of the error on ending the effect of the error on ending owner's equity for 20X3 is that it is owner's equity for 20X3 is that it is under stated by $5000 and 20X4 is under stated by $6000 and 20X4 is over stated by $5000 over stated by $6000 the effect of the error on ending owner's equity for 20X3 is that it is under stated by $7000 and 20X4 is over stated by $7000 720 150 730 140 740 130 180,000 125,280 23,240 102,040 77,960 182,500 125,280 21,740 103,540 78,960 185,000 125,280 20,240 105,040 79,960 180,000 125,280 19,000 106,280 73,720 182,500 125,280 17,700 107,580 74,920 185,000 125,280 16,400 108,880 76,120 180,000 125,280 21,600 103,680 76,320 182,500 125,280 20,160 105,120 77,380 185,000 125,280 18,720 106,560 78,440 FIFO would be used because units produced first would be sold first, keeping the inventory of current FIFO would be used because units produced first would be sold first, keeping the inventory of current FIFO would be used because units produced first would be sold first, keeping the inventory of current LIFO would be used seeing how LIFO would be used seeing how newer units placed in front, which newer units placed in front, which are then sold in that order last in is are then sold in that order last in is the first to leave the first to leave LIFO would be used seeing how newer units placed in front, which are then sold in that order last in is the first to leave FIFO would be used since the older FIFO would be used since the older FIFO would be used since the older units are priced higher units are priced higher units are priced higher 31,000 32,000 33,000 4,250 4,420 4,590 5,000 5,200 5,400 7,440 7,680 7,920 1,100 1,200 1,300 350 375 400 278 306 333 963 1,050 1,138 55,000 52,800 60,000 57,800 65,000 62,800 10,000 10,000 10,000 10,000 10,000 11,000 11,000 11,000 11,000 11,000 12,000 12,000 12,000 12,000 12,000 10,200 9,600 6,400 12,000 11,800 11,220 10,560 7,040 13,200 12,980 12,240 11,520 7,680 14,400 14,160 22,000 13,200 7,920 4,752 2,128 24,000 14,400 8,640 5,184 2,776 26,000 15,600 9,360 5,616 3,424 18,000 19,800 21,600 The exepenses for freight $800 and The exepenses for freight $800 and The exepenses for freight $800 and mcchine set up and testing charges mcchine set up and testing charges mcchine set up and testing charges $1400 will be added to machinery $1400 will be added to machinery $1400 will be added to machinery and insurance expenses will be and insurance expenses will be and insurance expenses will be shown in profit & loss account shown in profit & loss account shown in profit & loss account Change Account to: Based Upon Course Start Date Jul-Aug Sept-Oct 8,000 9,000 100,000 54,000 46,000 26,000 20,000 100,000 53,000 47,000 26,000 21,000 109,000 82,000 27,000 22,000 5,000 109,000 83,000 26,000 22,000 4,000 the effect of the error on ending the effect of the error on ending owner's equity for 20X3 is that it is owner's equity for 20X3 is that it is under stated by $8000 and 20X4 is over under stated by $9000 and 20X4 is over stated by $8000 stated by $9000 750 120 760 110 187,500 125,280 18,740 106,540 80,960 190,000 125,280 17,240 108,040 81,960 187,500 125,280 15,100 110,180 77,320 190,000 125,280 13,800 111,480 78,520 187,500 125,280 17,280 108,000 79,500 190,000 125,280 15,840 109,440 80,560 FIFO would be used because units produced first would be sold first, keeping the inventory of current FIFO would be used because units produced first would be sold first, keeping the inventory of current LIFO would be used seeing how newer LIFO would be used seeing how newer units placed in front, which are then units placed in front, which are then sold in that order last in is the first to sold in that order last in is the first to leave leave FIFO would be used since the older units are priced higher FIFO would be used since the older units are priced higher 34,000 35,000 4,760 4,930 5,600 5,800 8,160 8,400 1,400 1,500 425 450 361 389 1,225 1,313 70,000 67,800 75,000 72,800 13,000 13,000 13,000 13,000 13,000 14,000 14,000 14,000 14,000 14,000 13,260 12,480 8,320 15,600 15,340 14,280 13,440 8,960 16,800 16,520 28,000 16,800 10,080 6,048 4,072 30,000 18,000 10,800 6,480 4,720 23,400 25,200 The exepenses for freight $800 and The exepenses for freight $800 and mcchine set up and testing charges mcchine set up and testing charges $1400 will be added to machinery and $1400 will be added to machinery and insurance expenses will be shown in insurance expenses will be shown in profit & loss account profit & loss account Nov-Dec 10,000 100,000 52,000 48,000 26,000 22,000 109,000 84,000 25,000 22,000 3,000 the effect of the error on ending owner's equity for 20X3 is that it is under stated by $10000 and 20X4 is over stated by $10000 770 100 192,500 125,280 15,740 109,540 82,960 192,500 125,280 12,500 112,780 79,720 192,500 125,280 14,400 110,880 81,620 FIFO would be used because units produced first would be sold first, keeping the inventory of current LIFO would be used seeing how newer units placed in front, which are then sold in that order last in is the first to leave FIFO would be used since the older units are priced higher 36,000 5,100 6,000 8,640 1,600 475 417 1,400 80,000 77,800 15,000 15,000 15,000 15,000 15,000 15,300 14,400 9,600 18,000 17,700 32,000 19,200 11,520 6,912 5,368 27,000 The exepenses for freight $800 and mcchine set up and testing charges $1400 will be added to machinery and insurance expenses will be shown in profit & loss account