a. Berful sells a product. It had one item in beginning inventory that cost $100,000, and purchased two more-one for $70,000, and later, one for $80,000. If two of the three items were sold this year, determine the cost of goods sold under the following cost flow assumptions FIFO LIFO Weighted Average b. Berful buys a machine for $45,000 on the first day of the year. The machine is expected to have a life of 5 years, and to have a salvage value of $5,000. Calculate the second year's depreciation expense under the following methods. Straight-line method Double-declining balance c. Calculate the correct balance of cash in a firm's checking account by preparing a bank reconciliation, and place the correct balance on the line below. Balance per bank statement 4.932.27 Balance per books 3,479.48 Deposits in transit 1,654 24 Outstanding checks 3,028.89 Interest earned on bank account but not recorded on the books 8.64 Bank service charge, not recorded on books 20.50 Error in book recording of cash revenue ($100 deposit recorded as $10) 90.00 Ending cash balance d. What accounting entry or entries are required from your cash reconciliation in (c.) above? 3. A parts manufacturer in Argentina has fixed costs of 2 million pesos, variable costs of 1,000 p per unit, and a normal selling price of 1,500 p per unit. a. Compute breakeven in units. b. Calculate the contribution margin. C. Calculate the contribution margin ratio. d. How many units must be sold in the period to generate a profit of 1 million p.? 5. Identify the following costs as fixed costs, variable costs, or mixed costs by an analysis of their behavior as volume changes. Number of Units Total Cost Type of Cost 1 3 2 6 a. b. 1 2 90 90 C. 1 7 9 N Number of Units d. 1 2 Unit Cost 48 48 e. 1 2 48 40 1 48 N 24 g. Our standard cost for a single unit of the product we produce calls for one pound of raw material per unit. We contract to purchase this material at a cost of $10 per pound. Is this cost variable or fixed mixed ? or 4. Roy's Brazilia Bus Tour Company had the following bus maintenance costs during the last tourist season: Month Miles Traveled Cost (real) November December January February March April 12,750 15,900 19,050 22,500 30,000 12,000 17,100 17,400 17,550 18,000 18,750 16,500 With buses that are cobbled together from used parts found all over the western hemisphere, maintenance is a major issue. Help Roy by calculating the following using the high-low method: a. Variable cost per mile traveled b. Fixed cost per month c. What cost would be predicted for a month in which the buses travel 20,000 miles