Grays Company has inventory of 12 units at a cost of $7 each on August 1. On August 3, it purchased 22 units at $10 each. 14 units are sold on August 6. Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 14 units that were sold?
Read DetailsA company purchased a tract of land for its natural resources at a cost of $1,628,500. It expects to mine 2,050,000 tons of ore from this land. The salvage value of the land is expected to be $255,000. The depletion expense per ton of ore is:
Read DetailsA machine costing $211,800 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 482,000 units of product during its life. It actually produces the following units: 121,500 in Year 1, 123,200 in Year 2, 120,880 in Year 3, 126,500 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate – this difference was not predicted. (The machine cannot be depreciated below its estimated salvage value.) The depreciation expense for Year 1 for the machine under the straight-line method is
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