Reference no: EM132498022
Clancy has the following inventory information.
July 1 Beginning Inventory 20 units at $90
5 Purchases 120 units at $92
14 Sale 90 units
21 Purchases 60 units at $95
30 Sale 58 units
Question 1: Assuming that a perpetual inventory system is used, what is the ending inventory on a LIFO basis?
Question 2: Equipment purchased at the beginning of the fiscal year for $280,000 is expected to have a useful life of 5 years, or 12,000 operating hours, and a residual value of $40,000. Compute the depreciation for the first year of use by each of the following methods:
(a) straight-line
(b) units-of-production (1,300 hours first year)
(c) double-declining-balance