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Q4. Malik Company uses a periodic inventory system. The beginning inventory of a particular product, and the purchases during the current year, were as follows:

Q4. Malik Company uses a periodic inventory system. The beginning inventory of a particular product, and the purchases during the current year, were as follows:

Date

Transaction

Units

Price

Amount

Jan 1

Beginning inventory

60

$105

6,300

Mar 8

Purchase

30

$115

Aug 11

Purchase

90

$125

Oct. 23

Purchase

20

$135

At December 31, the ending inventory of this product consisted of 55 and selling price during year was $150. Using periodic costing procedures, determine the following under each (LIFO, FIFO and W. Avg.) of the flow assumptions:

(a) Cost of goods sold relating to this product and

(b) Cost of the year-end inventory

Q5. M/s. Sanders and sons purchased a machine on 1 Apr 2015 for $400000 from ABC & Co. and paid $100000 on its installation. The useful life of the machine is 3 years and its estimated residual value is $40000. On 31st March 2018, M/s. Sanders and sons sell the machinery for 250000.Charge depreciation as per the declining balance method @10 % p. a. Calculate

  1. accumulated depreciation for every year and
  2. loss/ profit earned by the firm after disposing off machine.
  3. Make the journal entry for disposal of machine.

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