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Unformatted text preview: Fin 3162 Inventory, Investment, Deprec, Operating Loss Homework #1. Transactions for the month of June were: Purchases Sales June 1 (balance) 800 @ $3.20 June 2 600 @ $5.50 3 2,200 @ 3.10 6 1,600 @ 5.50 7 1,200 @ 3.30 9 1,000 @ 5.50 15 1,800 @ 3.40 10 400 @ 6.00 22 500 @ 3.50 18 1,400 @ 6.00 25 200 @ 6.00 1. Assuming that peiodic inventory records are kept, calculate the ending inventory on a LIFO, FIFO and Weighted Average basis 2..Assuming that perpetual inventory records are kept in dollars, the ending inventory on a LIFO, FIFO and Weighted Average basis . #2 Presented below are unrelated cases involving investments in equity securities. Case I. The fair value of the trading securities at the end of last year was 30% below original cost, and this was properly reflected in the accounts. At the end of the current year, the fair value has increased to 20% above cost. Case II. The fair value of an available-for-sale security has declined to less than forty percent of the original cost. The decline in value is considered to be other than temporary.percent of the original cost....
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- Spring '10
- Depreciation, Generally Accepted Accounting Principles