problem 5 1a alternative cost flows perpetual lo p1 the following information appl 382651

Problem 5 1A Alternative cost flows perpetual LO P1 [The following information applies to the questions displayed below. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 160 units @ $52.20/unit Mar. 5 Purchase 255 units @ $57.20/unit Mar. 9 Sales 320 units @ $87.20/unit Mar. 18 Purchase 115 units @ $62.20/unit Mar. 25 Purchase 210 units @ $64.20/unit Mar. 29 Sales 190 units @ $97.20/unit ________________________________________ ________________________________________ ________________________________________ ________________________________________ Totals 740 units 510 units 1. Compute cost of goods available for sale and the number of units available for sale. @ Cost of Good available for sale @Number of units available for sale 2. Compute the number of units in ending inventory Ending inventory 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 95 units from beginning inventory and 225 units from the March 5 purchase; the March 29 sale consisted of 75 units from the March 18 purchase and 115 units from the March 25 purchase. (Round your per unit costs to 2 decimal places) a. FIFO Ending Inventory b. LIFO c. Weighted average d. Specific identification Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 95 units from beginning inventory and 225 units from the March 5 purchase; the March 29 sale consisted of 75 units from the March 18 purchase and 115 units from the March 25 purchase. (Round your per unit costs to 2 decimal places and inventory balances.) a. FIFO Gross Profit b. LIFO c. Weighted average d. Specific identification Problem 8 1A Plant asset costs; depreciation methods L.O. C1, P1 Xavier Construction negotiates a lump sum purchase of several assets from a company that is going out of business. The purchase is completed on January 1, 2011, at a total cash price of $820,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $511,450; land, $299,150; land improvements, $48,250; and four vehicles, $106,150. The companys fiscal year ends on December 31. 1. Prepare a table to allocate the lump sum purchase price to the separate assets purchased a. Prepare the journal entry to record the purchase 2. Compute the depreciation expense for year 2011 on the building using the straight line method, assuming a 15 year life and a $28,000 salvage value. Depreciation expense on the building 3. Compute the depreciation expense for year 2011 on the land improvements assuming a five year life and double declining balance depreciation. Depreciation expense on the land improvements