Zahler Company had the following transactions for the month…
Zahler Company had the following transactions for the month of June: Purchases Sales June 1 (balance) 3,200 @ $3.20 June 2 2,400 @ $5.50 3 8,800 @ 3.10 6 6,400 @ 5.50 7 4,800 @ 3.30 9 4,000 @ 5.50 15 7,200 @ 3.40 10 1,600 @ 6.00 22 2,000 @ 3.50 18 5,600 @ 6.00 25 800 @ 6.00 Assuming that perpetual inventory records are kept in dollars, the ending inventory on a LIFO basis is
Read DetailsAlexis Corporation sold 10,000 units of a new product for $5…
Alexis Corporation sold 10,000 units of a new product for $50/unit during 2023. The sales price included a 2-year warranty to cover any defects on the product. Management at Alexis Corporation estimates total warranty expenses to be 6% of sales dollars. Assuming actual warranty expenditures related to this product were $10,000 in 2023, what is the amount of estimated warranty liability recorded as of December 31, 2023?
Read DetailsVivitar purchased a piece of manufacturing equipment for $20…
Vivitar purchased a piece of manufacturing equipment for $200,000 with a five-year useful life and no salvage value. If Vivitar sells the machine for $150,000 at the end of the third year, which of the following statements is true? I: The gain on sale will be larger if Vivitar uses the double-declining balance method versus the straight-line method of depreciation II: The gain on sale will be larger if Vivitar depreciates the machinery using the straight-line method of depreciation versus the double-declining balance method III: The gain on sale will be the same regardless of depreciation method IV: Vivitar will incur more depreciation over the first three years of the useful life using the double-declining balance method versus the straight-line method of depreciation
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