Question

Please use the below information to answer questions 11-20.

Inventory

Date	Amounts of Caskets Purchased	Cost of Casket
10-Jun	2	$            500
11-Jun	3	$            600
12-Jun	3	$            800
13-Jun	2	$            900

Each casket will be sold for $1,200.

1. What is the weighted average cost per casket for the above inventory?
2. Using this weighted average, if you sold 3 caskets, what is your gross profit?
3. Using this weighted average, if you sold 2 caskets, what is your CGS?

Assume LIFO for the following questions, 14-19

4. If you sold 3 caskets, what is your cost of goods sold?
5. If you sold 3 caskets, what is your gross profit?
6. If you sold 3 caskets, what is your ending inventory?
7. If you sold 1 casket, what is your cost of goods sold?
8. If you sold 1 casket, what is your gross profit
9. If you sold 1 casket, what is your ending inventory?

Assume FIFO for the following questions, 20-25

10. If you sold 3 caskets, what is your cost of goods sold?
11. If you sold 3 caskets, what is your gross profit?
12. If you sold 3 caskets, what is your ending inventory?
13. If you sold 1 casket, what is your cost of goods sold?
14. If you sold 1 casket, what is your gross profit
15. If you sold 1 casket, what is your ending inventory?

26. If you purchased a limousine for $50,000 and decided to depreciate it using the declining balance method, what would your salvage value be after 5 years? Use a chart to display numbers if it helps.

Hint: Declining Balance Method assumes a rate of 40%.

27. If you purchased a limousine for $50,000 and decided to depreciate it using the sum of the years digits method, what would your depreciation expense be each year if the useful life was 5 years and the salvage value was $5,000?

Answer 1