Question
Please use the below information to answer questions 11-20. Inventory Date Amounts of Caskets Purchased Cost of Casket 10-Jun 2 $ 500 11-Jun 3 $
Please use the below information to answer questions 11-20.
Inventory
Date | Amounts of Caskets Purchased | Cost of Casket |
10-Jun | 2 | $ 500 |
11-Jun | 3 | $ 600 |
12-Jun | 3 | $ 800 |
13-Jun | 2 | $ 900 |
Each casket will be sold for $1,200.
- What is the weighted average cost per casket for the above inventory?
- Using this weighted average, if you sold 3 caskets, what is your gross profit?
- Using this weighted average, if you sold 2 caskets, what is your CGS?
Assume LIFO for the following questions, 14-19
- If you sold 3 caskets, what is your cost of goods sold?
- If you sold 3 caskets, what is your gross profit?
- If you sold 3 caskets, what is your ending inventory?
- If you sold 1 casket, what is your cost of goods sold?
- If you sold 1 casket, what is your gross profit
- If you sold 1 casket, what is your ending inventory?
Assume FIFO for the following questions, 20-25
- If you sold 3 caskets, what is your cost of goods sold?
- If you sold 3 caskets, what is your gross profit?
- If you sold 3 caskets, what is your ending inventory?
- If you sold 1 casket, what is your cost of goods sold?
- If you sold 1 casket, what is your gross profit
- If you sold 1 casket, what is your ending inventory?
26. If you purchased a limousine for $50,000 and decided to depreciate it using the declining balance method, what would your salvage value be after 5 years? Use a chart to display numbers if it helps.
Hint: Declining Balance Method assumes a rate of 40%.
27. If you purchased a limousine for $50,000 and decided to depreciate it using the sum of the years digits method, what would your depreciation expense be each year if the useful life was 5 years and the salvage value was $5,000?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started