1.Siam Paragon Corp. started their business this year and purchases the following inventory:15,000 units in January @$10 each, 25,000 units in March @ $12 each, 35,000 units in May @ $12 each, 50,000 units in August @ $14 each, 20,000 units in October @ $15 each, 30,000 unit in November @ $16 each, and 25,000 units in December @ $18 each.During the year they sold 170,000 units of their product.Required:1.Calculate the value of ending inventory and COGS utilizing the Average Cost, LIFO, and FIFO methods. Chonburi Corp. has just purchased new equipment for their business at a cost $18,000,000. They expect the equipment to have a useful estimated life of 4 years and a terminal value of $3,000,000 . In addition they feel they can get total production from the machinery of 5,000,000 units. Actual production was as follows: year one 1,000,000 units, year two 1,500,000 units, year three 1,500,000 units, year four 1,000,000 units .Required:1.Calculate the depreciation each year using straight line, units of production, sum of the year’s digits, and double declining balance methods.

Depreciation: Depreciation is the accounting method used for assets. Which allocates the cost of the…

Answered: Calculate the depreciation each year…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

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Problem 14E: For each of the following independent situations, calculate the missing values: 1. The Belen plant...

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1.Siam Paragon Corp. started their business this year and purchases the following inventory:

15,000 units in January @$10 each, 25,000 units in March @ $12 each, 35,000 units in May @ $12 each, 50,000 units in August @ $14 each, 20,000 units in October @ $15 each, 30,000 unit in November @ $16 each, and 25,000 units in December @ $18 each.

During the year they sold 170,000 units of their product.

Required:

1.Calculate the value of ending inventory and COGS utilizing the Average Cost, LIFO, and FIFO methods.

Chonburi Corp. has just purchased new equipment for their business at a cost $18,000,000. They expect the equipment to have a useful estimated life of 4 years and a terminal value of $3,000,000 . In addition they feel they can get total production from the machinery of 5,000,000 units. Actual production was as follows: year one 1,000,000 units, year two 1,500,000 units, year three 1,500,000 units, year four 1,000,000 units .

Required:

1.Calculate the depreciation each year using straight line, units of production, sum of the year’s digits, and double declining balance methods.

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