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QUESTION 31 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,
QUESTION 31
- 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
- Purchases:
- January 5,20151,1009.00
- January 25,20151,30010.00
- February 16,201580011.00
- March 26,2015 60012.00
- A physical inventory on March 31, 2015, shows 1,500 units on hand.
- Instructions
- Prepare schedules to compute the ending inventory at March 31, 2015, under each of the following inventory methods.
- (a)FIFO.(b)LIFO.(c)Weighted average.
QUESTION 32
- 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.
- Instructions
- (a)Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method.
- (b)Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years'-digits method.
- (c)Compute the amount of depreciation for each of Years 1 through 3 using the double-declining
- balance method. (In performing your calculations, round constant percentage to the nearest one hundredth of a point and round answers to the nearest dollar.
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