Toni M. Greka
ACC 205 Week 3 Assignment

1.) a= 21,000 + 4,000 = 25,000 b= 35,000 – 25,000 = 10,000 c= 21,800 + 31,200 + 53,000

2.) FIFO- Goods available for sale- 82,800 Ending inventory 31 March 20,000 Cost of goods sold 62, 800 LIFO- Goods available for sale 82,800 Ending inventory 31 March 16, 400 Cost of goods sold 66,400 Weighted average- Goods available for sale 82,800 Ending inventory 31 March 18,400 Cost of good sold 64,400

3.) 1 Jan debit merchandise inventory 3,000 and credit accounts payable 3,000
15 jan debit accounts receivable 2,550 and credit sales 2,550 debit cost of goods sold and credit merchandise inventory 1,800
20 Jan debit merchandise inventory 1,000 and credit accounts payable 1,000
25 Jan debit accounts receivable 2,550 and credit sales 2,550 debit cost of goods sold and credit merchandise inventory 1,700

Beehler Company LIFO
1 jan debit merch inventory and credit accounts payable 3,000
15 jan debit accounts receivable and credit sales 2,550 debit cost of goods sold and credit merch inventory 1,800
20 jan debit merch inventory and credit accounts payable 1,000
25 jan debit accounts receivable and credit sales 2,550 debit cost of goods sold and credit merch inventory 1,600

b.) FIFO- 100 Units @ $5 $500 LIFO- 100 Units @ $6 $600

c.) The merch inventory account is going to be debited automatically when making purchases. That’s why the purchases inventory acct is not used.

4.) FIFO- 1/3- 100 units, unit cost $125 total cost $12,500 4/3- 200 units, unit cost $135, total cost $27,000 6/3- 100 units, unit cost $ 145, total cost $14,500. Total quantity 400 and total cost $54,000. Ending inventory 7/3 100 units, $155 unit cost, total cost $15,500. Sales $100,000. Cost of goods sold- $54,000 Gross Profit $46,000.

LIFO- 4/3 200 units, $135 unit cost, total cost $27,000. 6/3- 100 units, unit cost $145, total cost $14,500 7/3- 100 units, unit cost $155 total cost $15,500. Total units 500 total cost $57,000. Ending inventory 3/17 50 units, $250 unit cost, total cost $12,500. Sales $100,000 Cost of good sold $57,000 Gross profit $43,000.

Weighted Average
1/3 100 units $125 unit cost, total cost $12,500. 4/3 200 units, unit cost $135, total cost $27,000 6/3- 100, unit cost $145, total cost $14,500 7/3- 100 units, unit cost #155, total cost $15,500. Total units 500, total cost $69,500. Weighted average cost per unit $69,500/ 500= $139. Cost of goods sold 400, $139, total $55,600. Ending inventory 100 units, $139 = $13,900. Sales $100,000 Cost of goods sold $55,600 Gross profit $44,400

b.) 1. FIFO 2. LIFO

5.) a.) Cost of van 40,000 Less: residual value 6,000 depreciable value $34,000 useful life 100,000 (34,000/100,000 = 0.34) Depreciation per mile 0.34 Depreciation for 20X8 17,000 x 0.34 = $5,780. b.) Cost of van 40,000 Less: residual value 6,000 depreciable value 34,000 useful life 5 yrs, depreciation per year 6,800 Depreciation for 20X8 6,800.

c.) Cost of van 40,000 Useful life 5 years Depreciation per year 20% (100/5) double declining 40% (20 x 2) Depreciation for the year 20X7 $16,000 Depreciation for year 20X8 $9,600 (40,000 – 16,000 = 24,000 x 40% = 9,600)