Problem 1. Maple Company started the year with no inventory.During the year, it purchased two identical inventory items at different times.The first unit cost $800 and the second, $700. One of the items was sold duringthe year.Required:Based on this information, howmuch product cost would be allocated to cost of goods sold and endinginventory, assuming use of: a. LIFOb. FIFOc. Weighted average Problem 2. Teague Company purchased a new machine on January 1,2012, at a cost of $150,000. The machine is expected to have an eight-year lifeand a $15,000 salvage value. The machine is expected to produce 675,000finished products during its eight-year life. Smith produced 70,000 units in2012 and 110,000 units during 2013. Required: 1) Determine the amount of depreciation expense to be recorded on the machinefor the years 2012 and 2013 under each of the following methods
Problem 1. Maple Company started the year with no inventory.
During the year, it purchased two identical inventory items at different times.
The first unit cost $800 and the second, $700. One of the items was sold during
the year.
Required:
Based on this information, how
much product cost would be allocated to cost of goods sold and ending
inventory, assuming use of:
a. LIFO
b. FIFO
c. Weighted average
Problem 2. Teague Company purchased a new machine on January 1,
2012, at a cost of $150,000. The machine is expected to have an eight-year life
and a $15,000 salvage value. The machine is expected to produce 675,000
finished products during its eight-year life. Smith produced 70,000 units in
2012 and 110,000 units during 2013.
Required:
1) Determine the amount of
for the years 2012 and 2013 under each of the following methods
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