Inventories
The inventory of Merit Warehouse company and data on purchases and sales for a two-year period are as follows. The company closes its books at the end of each year. It uses the perpetual inventory system
Year
Month
Description
Unit
Cost per unit ($ )
20X1
Jan
Beginning inventory
150
200

Mar
Purchase
80
220

July
Purchase
20
222

Aug
Purchase
70
230

Oct
Sales
200


Dec
Ending Inventory
120

Required:
a, Determine the cost of ending inventory and cost of goods sold for 20X1 using the average-cost method. (Round unit costs to the nearest cent).
b, Determine the cost of ending inventory and cost of goods sold for 20X1 using the FIFO method.
Questions 3: Plant assets
In recent years, Ahaa Delivery purchased three used vans. Various depreciation methods were selected for each van. Information concerning the van is summarized below:
Van
Purchase
day
Cost
Residual
Value
Useful Life in
years
Depreciation
Method
1
1/1/20X0
$155,000
$5,000
5
Straight-line
2
1/1/20X0
$280,000
$30,000
4
Declining-Balance
3
1/1/20X1
$120,000
$5,000
4
Units-of-activity
4
1/7/20X0
$180,000
$20,000
3
Declining-Balance
For the declining-balance method, the company uses the double-declining rate.
For the units-of-activity method, total miles are expected to be 210,000. Actual miles of use in the first 2 years were 20X1, 55,000; and 20X2, 40,000
Required:
Compute the amount of accumulated depreciation on each van at December 31, 20X2.