Solutions for 37-40

galeulate the cost of goods sold and ending inventory under each of the following orination below about purchases and sales during the year. Assume 1 Beginning inventory 50 e s25 10028 20 30 a periodic inventory system. 10 Purchases 19 Purchases May 1-31 Sales 130 Cost of Goods Sold Ending Inventory FIFO LIFO b. Weighted-average 35) Prepare joumal enties for the following tansactions for Jane's Violin Shop applying the perpetual inventory system. Omit explanations Mar. 12 16 Returned 1 bow for $10 credit 22 Sold 3 bows for $150, cost $50 29 Paid the balance due on account Purchased on account 2 boxes of bows for $120. 39) Yamara Company purchased a $60,000 machine at the beginning of the year. The machine is expected to have a useful life of 5 years or 20,000 operating hours and a residual value of $10,000. Compute the amount of depreciation for the first and second years under each of the methods below Method Year 1 Year 2 Units-of-production-production in year 1, 5,000 hours; year 2, 6,000 hours Double-declining-balance C.$. 40) Clark's warehouse was destroyed in a fire on May 12. The only records that could be salvaged were as follow Inventory May 1 Purchases May 1-11 Sales May 1-11 Clark's average gross profit was 30%. $2,500 8,000 9,000 Required: Find the estimated cost of the May 12 inventory that was destroyed