Solved by verified expert :Problem 1. Maple Company started the year with no
inventory. During the year, it purchased two identical inventory items at
different times. The first unit cost $800 and the second, $700. One of the
items was sold during the year.
Required:
Based on this information, how much product cost would be
allocated to cost of goods sold and ending inventory, assuming use of:
a. LIFO
b. FIFO
c. Weighted average
Cost of goods sold
Ending inventory
LIFO
FIFO
Weighted Average
Problem
2. Teague Company
purchased a new machine on January 1, 2012, at a cost of $150,000. The machine
is expected to have an eight-year life and a $15,000 salvage value. The machine
is expected to produce 675,000 finished products during its eight-year life.
Smith produced 70,000 units in 2012 and 110,000 units during 2013.
Required:
1) Determine the amount of depreciation expense to be recorded on the machine
for the years 2012 and 2013 under each of the following methods:
2012
2013
a) Straight-line method
b) Units of production method
