Use the following data for the next five questions: Peachy Inc, has an inventory

Question

Use the following data for the next five questions: Peachy Inc, has an inventory of caleulators on January 1 and purchases of thisiterm during 3l as follows Jan. 1 Mar. 5 Sept. 3 Nov. 4 Beginning inventory Purchase Purchase Purchase 300 units@ $3.00 900 units @ $4.00 1,000 units@$5.00 500 units@$7.00 During 2011, Peachy sold 1,200 caleulators at s10.00 each. Assume Peachy uses a Reri Inventory System. 6. Compute the total cost of Goods Available For Sale on December 31, 2011, s 7. Using FIFO, compute the cost of the ending inventory on December 31, 2011.S 8. Using LIFO, compute the Gross Margin on the income statement for the yer c December 31, 2011. S Use the following data for the next three questions. (Round all calculations to the neares whole dollar!) On July 1, 2011 Dawn Company purchased a delivery truck for $95,000 The estimand adf life of the truck is five years, during which time it will be driven about 200,000 miles. Estintd residual value is $5,000. ep 9. If Dawn Company uses the sum-of-the- years -digits method of depreciation, the expense for 2012 will be: 10. If Dawn Company uses the double-declining-balance method of deprecation, the accu wn Company uses the straight-line method of depreciation, the book value of the ase mber 31, 2013, (after adjusting entries), will be depreciation balance at December 31, 2011 (after adjusting entries) will be

Explanation / Answer

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 300 3 900 300 3 900 Purchasse 5-Mar 900 4 3600 900 4 3600 3-Sep 1000 5 5000 1000 5 5000 4-Nov 500 7 3500 500 7 3500 TOTAL 2700 13000 1200 4500 1500 8500 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 300 3 900 300 3 900 Purchasse 5-Mar 900 4 3600 900 4 3600 3-Sep 1000 5 5000 700 5 3500 300 5 1500 4-Nov 500 7 3500 500 7 3500 TOTAL 2700 13000 1200 7000 1500 6000 Q6. Total cost of Ggoods available for sale: $ 13000 Q7. Cost of Ending Inventory under FIFO: $ 8500 Q8. Gross margin under LIFO Sales (1200*10) 12000 Less: COGS 7000 Gross margin under LIFO 5000

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