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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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