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Question 1

Digital Enterprises uses a perpetual inventory system and has the following data available from
inventory, purchases, and sales for the month of January.

Date

Activity

Unit
s

Purchase Price
(per unit)

Jan.
01

Beg.
Inventory

110

\$4.83

Purchase 1 460

\$5.33

Jan.
07
Jan.
16
Jan.
24
Jan.
30

Sale 1

330

Purchase 2 580
Sale 2

Sale Price (per
unit)

\$9.45
\$5.7

290

\$11

Using the FIFO inventory method calculate the total cost of goods sold for the month. Please
round total cost to nearest whole dollar.
Question 2
Digital Enterprises uses a perpetual inventory system and has the following data available from
inventory, purchases, and sales for the month of January.

Date

Activity

Unit
s

Purchase Price
(per unit)

Jan.
01

Beg.
Inventory

110

\$4.84

Jan.
07
Jan.
16
Jan.
24
Jan.
30

Purchase 1 460
Sale 1

Sale 2

\$5.4

330

Purchase 2 580
290

Sale Price (per
unit)

\$9.45
\$5.65
\$11

Using the Weighted Average inventory method calculate the cost of ending inventory after the last
sale.
*Note: for calculations, round average cost out to four decimal places and total cost to
nearest whole dollar*.

Question 3
Digital Enterprises uses a perpetual inventory system and has the following data available from
inventory, purchases, and sales for the month of January.

Date

Activity

Unit
s

Purchase Price
(per unit)

Jan.
01

Beg.
Inventory

110

\$4.89

Purchase 1 460

\$5.48

Jan.
07
Jan.
16
Jan.
24
Jan.
30

Sale 1

330

Purchase 2 580
Sale 2

290

Sale Price (per
unit)

\$9.45
\$5.65
\$11

Using the LIFO inventory method calculate the total cost of goods sold for the month. Please
round total cost to nearest whole dollar.

Question 4

Suppose a company purchased land and a building for \$16545663 cash. The appraised value of the
building was \$12872190, and the land was appraised at \$7036613.
What dollar amount of the purchase price will be allocated to the Building account?
*Note: for calculations, round to nearest whole percentage before calculating the allocation of the
purchase price (i.e., if percentage calculates out to be 0.249, then round up to 25%)*

Question 55 pts
At the beginning of 2023, Apu purchases a new Squishee machine for the Kwik­E­Mart with a cost of
\$194955. The new machine has an estimated life of 9 years or 101942 units (squishee drinks). The
estimated salvage value is \$20492. During 2023, 12671 units (drinks) were made with the new
machine and during 2024, 14329 units (drinks) were made.
Calculate the accumulated depreciation on December 31, 2023, using units­of­production
depreciation.

Question 6

At the beginning of 2023, Apu purchases a new Squishee machine for the Kwik­E­Mart with a cost of
\$208064. The new machine has an estimated life of 9 years or 101820 units (squishee drinks). The
estimated salvage value is \$20405. During 2023, 13290 units (drinks) were made with the new
machine and during 2024, 14454 units (drinks) were made.
What is net book value at the end of 2025, using straight­line depreciation?

Question 7
The Galactic Federation purchased a new X­wing at the beginning of 2024 for \$286895. The
Federation decided to depreciate the X­wing over a 6­year period using the double­declining­
balance method. The Federation estimated the X­wing’s salvage value at \$50,000.
What is the depreciation expense for December 31, 2025?