Saint MBA560 Test 3

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Description

Problem 1. Maple Company started the year with no
inventory. During the year, it purchased two identical inventory items at
different times. The first unit cost $800 and the second, $700. One of the
items was sold during the year.

Required:

Based on this information,
how much product cost would be allocated to cost of goods sold and ending
inventory, assuming use of:

a. LIFO
b. FIFO
c. Weighted average

Problem
2.
Teague Company
purchased a new machine on January 1, 2012, at a cost of $150,000. The machine
is expected to have an eight-year life and a $15,000 salvage value. The machine
is expected to produce 675,000 finished products during its eight-year life.
Smith produced 70,000 units in 2012 and 110,000 units during 2013.

Required:

1) Determine the amount of depreciation expense to be recorded on the machine
for the years 2012 and 2013 under each of the following methods:

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