QUESTION 31

1. Sawyer Company was formed on December 1, 2014.The following information is available from Sawyer's inventory records for Product BAP.

UnitsUnit Cost

January 1, 2015 (beginning inventory)600$8.00

1. Purchases:
2. January 5,20151,1009.00
3. January 25,20151,30010.00
4. February 16,201580011.00
5. March 26,2015 60012.00
6. A physical inventory on March 31, 2015, shows 1,500 units on hand.
7. Instructions
8. Prepare schedules to compute the ending inventory at March 31, 2015, under each of the following inventory methods.
9. (a)FIFO.(b)LIFO.(c)Weighted average.

QUESTION 32

1. Vaughn Company purchases equipment on January 1, Year 1, at a cost of $518,000. The asset is expected to have a service life of 12 years and a salvage value of $50,000.
2. Instructions
3. (a)Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method.
4. (b)Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years'-digits method.
5. (c)Compute the amount of depreciation for each of Years 1 through 3 using the double-declining
6. balance method. (In performing your calculations, round constant percentage to the nearest one hundredth of a point and round answers to the nearest dollar.