I worked these questions but Im not sure if the answer is correct. I need assistance with 1-3 and a possible check on the questions I already completed.
UNIVERSITY OF MARYLAND UNIVERSITY COLLEGE INTERMEDIATE ACCOUNTING ACCT310 NOTE: Be sure to round off all your dollar calculations and final answers to the nearest whole dollar. Round off all percentage calculations to 2 decimal places (i.e. 14.55%). 1. Dock Inc. adopted the dollar-value LIFO inventory method as of January 1, 2015. A single inventory pool and an internally computed price index are used to compute Brock's LIFO inventory layers. Information about Dock's dollar value inventory follows: Date 1/1/2015 20154 layer 12/31/2015 2016 layer 12/31/2016 Inventory At base cost At current Year cost Year cost $60,000 $ 60,000 7,500 21,000 67,500 81,000 22,500 39,000 $90,000 $120,000 At dollar Value LIFO $60,000 9,000 69,000 ? ? Required: What is Dock's dollar value LIFO inventory at December 31, 2016? 2. Crunch Company uses the conventional retail inventory method to account for inventory. The following information related to 2016 operations: Beginning inventory and purchases Net markups Net markdowns Sales Average Cost Retail $450,00 $690,00 0 0 30,000 45,000 585,000 Required: What amount should be reported as cost of sales for 2016? ACCT310 Quiz Three Concluded: Page 2 of 2 3. Quince Inc. uses the periodic inventory costing system. The Quince ending merchandise inventory official count at December 31, 2017 totaled $120,000. However, the balance in the merchandise inventory general ledger account at December 31, 2017 was $125,000. What was the amount of the over-orunderstatement for cost of goods sold and gross profit for 2017? 4. Timken Company purchased equipment for its roller bearing process on January 1, 2015. The cost of this machine was $140,000. The company estimated that the equipment would have a salvage value of $15,000 at the end of its service life. Its service life is estimated at 6 years. Required: Compute the depreciation expense under the following methods for the year 2015: Page 1 of 3 1) Straight-line method 2) Sum-of-the-years-digits 3) Double declining balance 5000understand for the cost of goods sold and a 5000 overstated for gross profit. 14000015000)/20,833.33 per year deprection 125000*(6/21)= $35,714.29 1/6X2= 33.33% X 140000 = 46662 5. Foremost purchased a machine on 1/1/14 for $200,000, estimated salvage value $20,000 and estimated service life of 6 years. Required: If the depreciation expense for 2015 was $42,857; what depreciation method does Foremost use? Round all answers to the nearest whole dollar. Foremost use units of Production method: =n(n+1)/2 =6(6+1)/2=21 2014 dep expense=(20000020000)*6/21=51428.57 2015 dep expense=(20000020000)*5/21=42857 6. Benson Company purchased equipment for $100,000 in 2012. The machinery originally had an estimated life of 8 years and a salvage value of $10,000. Benson used the straight-line depreciation method. In 2016, the estimated life was changed to 10 years. Required: What is the annual depreciation expense for 2016? Round all answers to the nearest whole dollar. Equipment = $100000 estimated life = 8 years salvage value = 10000 straight line depreciation = (10000010000)/8 year = 90000/8 = 11250 2012 = 11250 2013 = 11250 2014 = 11250 2015 = 11250 Page 2 of 3 WDV opening 2016 = 100000 (11250*4) = 10000045000 = 55000 5500010000/(104) years = 45000/6 = 7500 in the year 2016 depreciation expense Page 3 of 3
