Question 1

Digital Enterprises uses a perpetual inventory system and has the following data available from inventory, purchases, and sales for the month of January.

Date	Activity	Units	Purchase Price (per unit)	Sale Price (per unit)
Jan. 01	Beg. Inventory	110	$4.75
Jan. 07	Purchase 1	460	$5.49
Jan. 16	Sale 1	330		$9.45
Jan. 24	Purchase 2	580	$5.75
Jan. 30	Sale 2	290		$11

Using the FIFO inventory method calculate the total cost of goods sold for the month. Please round total cost to nearest whole dollar.

Question 2

Digital Enterprises uses a perpetual inventory system and has the following data available from inventory, purchases, and sales for the month of January.

Date	Activity	Units	Purchase Price (per unit)	Sale Price (per unit)
Jan. 01	Beg. Inventory	110	$4.8
Jan. 07	Purchase 1	460	$5.32
Jan. 16	Sale 1	330		$9.45
Jan. 24	Purchase 2	580	$5.61
Jan. 30	Sale 2	290		$11

Using the Weighted Average inventory method calculate the cost of ending inventory after the last sale.

*Note: for calculations, round average cost out to four decimal places and total cost to nearest whole dollar*.

Question 3

Digital Enterprises uses a perpetual inventory system and has the following data available from inventory, purchases, and sales for the month of January.

Date	Activity	Units	Purchase Price (per unit)	Sale Price (per unit)
Jan. 01	Beg. Inventory	110	$4.71
Jan. 07	Purchase 1	460	$5.46
Jan. 16	Sale 1	330		$9.45
Jan. 24	Purchase 2	580	$5.74
Jan. 30	Sale 2	290		$11

Using the LIFO inventory method calculate the total cost of goods sold for the month. Please round total cost to nearest whole dollar.

Question 4

Suppose a company purchased land and a building for $17027184 cash. The appraised value of the building was $13489468, and the land was appraised at $8238190.

What dollar amount of the purchase price will be allocated to the Building account?

*Note: for calculations, please do not round the percentage.

Question 5

At the beginning of 2023, Apu purchases a new Squishee machine for the Kwik-E-Mart with a cost of $201187. The new machine has an estimated life of 11 years or 104093 units (squishee drinks). The estimated salvage value is $20599. During 2023, 13062 units (drinks) were made with the new machine and during 2024, 14178 units (drinks) were made.

Calculate the accumulated depreciation on December 31, 2023, using units-of-production depreciation.

Question 6

At the beginning of 2023, Apu purchases a new Squishee machine for the Kwik-E-Mart with a cost of $206135. The new machine has an estimated life of 11 years or 102352 units (squishee drinks). The estimated salvage value is $19107. During 2023, 13309 units (drinks) were made with the new machine and during 2024, 14202 units (drinks) were made.

What is net book value at the end of 2025, using straight-line depreciation?

Question 7

The Galactic Federation purchased a new X-wing at the beginning of 2024 for $286895. The Federation decided to depreciate the X-wing over a 6-year period using the double-declining-balance method. The Federation estimated the X-wings salvage value at $50,000.

What is the depreciation expense for December 31, 2025?

Question 8

The Empire is in desperate need of cash to fund the continuing war with the Rebellion so the Emperor and Imperial officers decide to sell the Death Star and they put it on Craigslist.com. The Death Star has a fair market value of $530 million and they are able to find a buyer who pays them $510 million. At the time of sale, the Death Star is listed on the Empires balance sheet for $352 million. The Empire had purchased the Death Star for $450 million and was depreciating it over 25 years using the straight-line method.

Record the journal entry for the sale of the Death Star on December 18, 2025. To answer this question, please copy and paste the table, and enter your answers in corresponding cells of the table. You may or may not need all of the rows in the table.