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