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    Dyer Co: compute ending inventory, CGS (FIFO, LIFO, Avg)' Thomas Co: depreciation

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    PART V - INVENTORY

    Dyer Company had a beginning inventory of 200 units at a cost of $12 per unit on August 1. During the month, the following purchases and sales were made.

    Purchases Sales
    August 4 250 units at $13 August 7 150 units
    August 15 350 units at $15 August 11 100 units
    August 28 200 units at $14 August 17 250 units
    August 24 220 units

    Dyer uses a periodic inventory system.

    Instructions: Determine ending inventory and cost of goods sold under (a) average cost, (b) FIFO, and (c) LIFO.

    (a) Average cost:
    Ending inventory = $____________; cost of goods sold = $_____________.

    (b) FIFO:
    Ending inventory = $_____________; cost of goods sold = $____________.

    (c) LIFO:
    Ending inventory = $_____________; cost of goods sold = $____________.

    PART VI - DEPRECIATION
    Thomas Company purchased equipment for $800,000 cash on January 1, 2002. The estimated life is 5 years or 1,000,000 units; salvage value is estimated at $50,000. Actual activity was 180,000 units in 2002, and 200,000 units in 2003.

    Instructions: Compute the annual depreciation expense for 2002 and 2003, and book value at December 31, 2003, under the following depreciation methods: (a) units-of-activity, (b) straight-line, and (c) double-declining-balance.

    (a) Units-of-activity
    2002 depreciation = $_______________.

    2003 depreciation = $_______________.

    12/31/03 book value = $_______________.

    (b) Straight-line
    2002 depreciation = $_______________.

    2003 depreciation = $_______________.

    12/31/03 book value = $_______________.

    (c) Double-declining-balance
    2002 depreciation = $_______________.

    2003 depreciation = $_______________.

    12/31/03 book value = $_______________.

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