Assignment

1. Adnan Naeem Imports, Ltd has the following information about the
inventory of electronic components for October 2016

Date Quantity Cost per item

Beginning inventory 150 $ 32
5 October purchase 200 32
17 October purchase 450 31
28 October purchase 100 33
At the end of October, 220 components remained in inventory.
Requirement
a. If uses the FIFO method of allocating inventory, what would is the cost
of goods sold for October?
b. If company uses the FIFO method of allocating inventory costs, what
would is the ending inventory?
c. If company uses the average cost method of allocating inventory costs,
what would is the ending inventory for October?
2. Furniture & fixtures cost $20,000. Expected life for these assets is 5 years and the
estimated residual value (face value) is $5000. Calculate the annual depreciation
charge using the straight line method?
3. A business purchases a car for $20,000. The machine had a life of five years and the
estimated residual value was $4,000. The business charges depreciation on straight
line method. What was the machine’s value at the end of fourth year?