Argument Analysis Assignment

Argument Analysis: 2-3 pages

Assignment Question(s):                                                     (Marks.5)

 

Q1.Come up with a merchandise company scenario, where this company performed four purchasing transactions and two sales transactions. Then, calculate the balance of ending inventory and cost of goods sold after each sales transaction, assuming the company used the FIFO, Moving Average Cost. Use the following table to answer. (2 mark)

 

Answer:

Date Purchase Sales (COGS) Ending inventory
       

 

 

 

Q2.ABC Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the current month. Prepare a schedule computing estimate retail inventory using the conventional methods. Round numbers.(1 mark).

  Cost Retail
Beginning Inventory 78,000 105,000
Net purchases 214,000 292,000
Net markups   14,000
Net markdown   3,700
Normal spoilage   2,300
Abnormal spoilage 3,400 5,500
Sales   310,000
Employees’ discount   11,200

 

 

 

 

 

 

 

 

 

 

 

Answer:

 

 

 

 

Q3.In your own words,discuss (1) the different reasons why a company would decide to dispose its plant assets, (2) the steps needs to be done to account for the disposal. (3) Give a numeric example. (2 mark).

 

 

Answer:

 

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