A hardware merchant using the LIFO method of valuing inventory has 200 hammers r
ID: 2772477 • Letter: A
Question
A hardware merchant using the LIFO method of valuing inventory has 200 hammers remaining in inventory. The merchant purchased hammers over a three-month period as follows: 120 purchased at $3.50 on April 1, 150 purchased at $3.62 on May 1, and 150 purchased at $3.72 on June 1.
Compute the value of the ending inventory of hammers at LIFO cost. Round your answer to two decimal places.
$_____
Forman and Brasso Furniture Company had net income of $34,000 and net sales of $248,800.
Compute the relationship of net income to net sales. Express your answer as a percentage. (Compute answer to two decimal places.)
___%
Voice Genesis, Inc. uses the units-of-production method of depreciation. Electronic equipment costing $82,300 has 60,000 estimated hours of operation and an estimated scrap value of $2,500. It operated 20,000 hours in the first year.
Compute the book value at the end of the first year
$____
Voice Genesis, Inc. uses the units-of-production method of depreciation. Electronic equipment costing $82,300 has 60,000 estimated hours of operation and an estimated scrap value of $2,500. It operated 20,000 hours in the first year.
Compute the book value at the end of the first year.
$_____
A hardware merchant using the LIFO method of valuing inventory has 200 hammers remaining in inventory. The merchant purchased hammers over a three-month period as follows: 120 purchased at $3.50 on April 1, 150 purchased at $3.62 on May 1, and 150 purchased at $3.72 on June 1.
Compute the value of the ending inventory of hammers at LIFO cost. Round your answer to two decimal places.
$_____
Forman and Brasso Furniture Company had net income of $34,000 and net sales of $248,800.
Compute the relationship of net income to net sales. Express your answer as a percentage. (Compute answer to two decimal places.)
___%
Voice Genesis, Inc. uses the units-of-production method of depreciation. Electronic equipment costing $82,300 has 60,000 estimated hours of operation and an estimated scrap value of $2,500. It operated 20,000 hours in the first year.
Compute the book value at the end of the first year
$____
Voice Genesis, Inc. uses the units-of-production method of depreciation. Electronic equipment costing $82,300 has 60,000 estimated hours of operation and an estimated scrap value of $2,500. It operated 20,000 hours in the first year.
Compute the book value at the end of the first year.
$_____
Explanation / Answer
Answes :-
a.) Computation of the value of ending inventory of hammers at LIFO cost
Purchase Detail
Inventory at the END = 200 Hammers
Value of 200 Hammers at the END (LIFO Method) = (120*3.5)+(80*3.62)
= $ 709.6
In LIFO Method last purchase will issue first to the production
b.) Relationship of Net Income to Net Sales
Net Income = $ 34000
Net Sales = $ 248800
Ratio of net income to net sale = net income / net sale
= $ 34000 / $ 248800
= 13.66%
c.) Computation of Book Value of Electronic Equipment at the end of FIRST Year
Cost of Electronic Equipment = $ 82300
Estimated number of Hours = 60000 Hours
Estimated Scrap Value = $ 2500
Number of Operating hours during the first year = 20000 Hours
Depreciation per hour = Cost of equipment - Scrap Value / Total estimated hour of Equipment
= $ 82300 - $ 2500 / 60000 hours
= $ 1.33 Per Hour
Depreciation in First year = 20000 hours * Depreciation per hour
= 20000 hours * $ 1.33 per hour
= $ 26600
Book Value of Equipment at the end of first year = Cost of Equipment - Depreciation in first year
= $ 82300 - $ 26600
= $ 55700
d.) Computation of Book Value of Electronic Equipment at the end of FIRST Year
Cost of Electronic Equipment = $ 82300
Estimated number of Hours = 60000 Hours
Estimated Scrap Value = $ 2500
Number of Operating hours during the first year = 20000 Hours
Depreciation per hour = Cost of equipment - Scrap Value / Total estimated hour of Equipment
= $ 82300 - $ 2500 / 60000 hours
= $ 1.33 Per Hour
Depreciation in First year = 20000 hours * Depreciation per hour
= 20000 hours * $ 1.33 per hour
= $ 26600
Book Value of Equipment at the end of first year = Cost of Equipment - Depreciation in first year
= $ 82300 - $ 26600
= $ 55700
Date of Purchase Quantity (Units) Rate/Unit Amount 1, April 120 $ 3.5 420 1, May 150 $ 3.62 543 1, June 150 $ 3.72 558Related Questions
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