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# 1. Specific identification method. Boston Galleries uses the

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1. Specific identification method. Boston Galleries uses the specific identification method for inventory valuation. Inventory information for several oil paintings follows.
Painting Cost
1/2 Beginning inventory Woods \$21,000
4/19 Purchase Sunset 21,800
6/7 Purchase Earth 31,200
12/16 Purchase Moon 4,000

Woods and Moon were sold during the year for a total of \$35,000. Determine the firm’s
a. cost of goods sold.
b. gross profit.
c. ending inventory.
2. Inventory valuation methods: basic computations. The January beginning inven¬tory of the Gilette Company consisted of 300 units costing \$40 each. During the first quarter, the company purchased two batches of goods: 700 Units at \$44 on February 21 and 800 units at \$50 on March 28. Sales during the first quarter were 1,400 units at \$75 per unit. The White Company uses a periodic inventory system. Using the White Company data, fill in the following chart to compare the results obtained under the FIFO, LIFO, and weighted-average inventory methods.

FIFO LIFO Weighted Average

Goods available for sale \$ \$ \$
Ending inventory, March 31
Cost of goods sold

3. Perpetual inventory system: journal entries. At the beginning of 20X3, Beehler Company implemented a computerized perpetual inventory system. The first transactions that occurred during 20X3 follow:
• 1/2/20X3 Purchases on account: 500 units @ \$6 = \$3,000
• 1/15/20X3 Sales on account: 300 units @ \$8.50 = \$2,550
• 1/20/20X3 Purchases on Account: 200 units @ 5 = \$1,000
• 1/25/20X3 Sales on Account: 300 units @ \$8.50 = \$2,550
The company president examined the computer-generated journal entries for these transactions and was confused by the absence of a Purchases account.
a. Duplicate the journal entries that would have appeared on the computer printout under FIFO & LIFO
b. Calculate the balance in the firm’s Inventory account under each method.
c. Briefly explain the absence of the Purchases account to the company president.

4. Inventory valuation methods: computations and concepts.

Wild Riders Surfboard Company began business on January 1 of the current year. Purchases of surfboards were as follows:

Date Quantity Unit Cost Total Cost
1/3 100 \$125 \$12,500
4/3 200 \$135 \$27,000
6/3 100 \$145 \$14,500
7/3 100 \$155 \$15,500
Total 500 \$69,500

Wild Riders sold 400 boards at \$250 per board on the dates listed below. The company uses a perpetual inventory system.

Date Quantity Sold Unit Price Total Sales
3/17 50 \$250 \$12,500
5/17 75 \$250 \$18,750
8/10 275 \$250 \$68,750
Total 400 \$100,000
Instructions
a. Calculate cost of goods sold, ending inventory, and gross profit under each of the following inventory valuation methods:
• First-in, first-out
• Last-in, first-out
• Weighted average

b. Which of the three methods would be chosen if management’s goal is to
(1) produce an up-to-date inventory valuation on the balance sheet?
(2) show the lowest net income for tax purposes?

5. Depreciation methods. XXXXX XXXXX Enterprises purchased a delivery van for \$40,000 in January 20X7. The van was estimated to have a service life of 5 years and a resid¬ual value of \$6,000. The company is planning to drive the van 20,000 miles annually. Compute depreciation expense for 20X8 by using each of the following methods:
a. Units-of-output, assuming 17,000 miles were driven during 20X8
b. Straight-line
c. Double-declining-balance
6. Depreciation computations. Alpha Alpha Alpha, a college fraternity, purchased a new heavy-duty washing machine on January 1, 20X3. The machine, which cost \$2,000, had an estimated residual value of \$100 and an estimated service life of 4 years (1,800 washing cycles). Calculate the following:
a. The machine’s book value on December 31, 20X5, assuming use of the straight-line depreciation method
b. Depreciation expense for 20X4, assuming use of the units-of-output depreciation method. Actual washing cycles in 20X4 totaled 500.
c. Accumulated depreciation on December 31, 20X5, assuming use of the double-declining-balance depreciation method.

7. Depreciation computations: change in estimate. Aussie Imports purchased a specialized piece of machinery for \$50,000 on January 1, 20X3. At the time of acquisition, the machine was estimated to have a service life of 5 years (25,000 operating hours) and a residual value of \$5,000. During the 5 years of operations (20X3 - 20X7), the machine was used for 5,100, 4,800, 3,200, 6,000, and 5,900 hours, respectively.
Instructions
a. Compute depreciation for 20X3 - 20X7 by using the following methods: straight line, units of output, and double-declining-balance.
b. On January 1, 20X5, management shortened the remaining service life of the machine to 15 months. Assuming use of the straight-line method, compute the company’s depreciation expense for 20X5.
c. Briefly describe what you would have done differently in part (a) if Aussie Imports had paid \$47,800 for the machinery rather than \$50,000 In addition, assume that the company incurred \$800 of freight charges \$1,400 for machine setup and testing, and \$300 for insurance during the first year of use.
Submitted: 2 months ago.
Category: Multiple Problems
Expert:  F. Naz replied 2 months ago.
Welcome to JA, by what time do you need the answer thanks.
Customer: replied 2 months ago.

I don't see any answers to any of the questions

Expert:  F. Naz replied 2 months ago.
Customer: replied 2 months ago.

I really need it by tomorrow morning. How long will it take?

Expert:  F. Naz replied 2 months ago.
Customer: replied 2 months ago.

What time do you think you can have it completed?

Expert:  F. Naz replied 2 months ago.
In next 18 to 24 hours, thanks.
Customer: replied 2 months ago.

So are you saying you would not be able to have it completed until tomorrow evening around 8:30 pm?

Customer: replied 2 months ago.
Jawaad said it would take him 18 to 24 hours to have my assignment completed. I just needed to know if you could guarantee it will be complete by tomorrow evening no later than 9 p.m. I really needed to have it completed by tomorrow morning but I will just turn it in late if it cannot be completed until then. I really need help and hope you all will not let me down on getting this completed.
Expert:  F. Naz replied 2 months ago.
I thought that tomorrow means at least 24 hours, therefore I had given the time to be on safeside, can you tell me in how many hours from now you need the answer thanks.
Customer: replied 2 months ago.
Thank you so much. I really appreciate it
Expert:  F. Naz replied 2 months ago.
In how many hours do you need the answer, thanks.
Customer: replied 2 months ago.
8:30 pm is the lastest I need to receive it but if if I can receive it earlier that wold be great
Expert:  F. Naz replied 2 months ago.
How many hours are left in 8:30 pm
Expert:  F. Naz replied 2 months ago.
Have a nice day

F. Naz, B.Com
Satisfied Customers: 3834
Experience: have completed B.Com and CA Finalist
Customer: replied 2 months ago.

I am a little confused with the answers but I assume what is highlighted in yellow are the answers to each. Thank you for all of your assistance and for your prompt response.

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