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Class Activity 17

1. The document contains sales data for stainless steel from December to December including units sold, price per unit and total sales revenue. The total amount of stainless steel sold was 273,885 DM. 2. It then shows inventory and cost of sales figures for sales on December 7 and December 15. 3. It asks several questions about depreciating equipment: a) calculating depreciation expense using straight line and units of production methods, b) calculating net book value of equipment in 2021 using reducing balance method, c) stating the best depreciation method is units of production because it better matches expenses to revenue generated by a company that produced 200,000 units.

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10 views

Class Activity 17

1. The document contains sales data for stainless steel from December to December including units sold, price per unit and total sales revenue. The total amount of stainless steel sold was 273,885 DM. 2. It then shows inventory and cost of sales figures for sales on December 7 and December 15. 3. It asks several questions about depreciating equipment: a) calculating depreciation expense using straight line and units of production methods, b) calculating net book value of equipment in 2021 using reducing balance method, c) stating the best depreciation method is units of production because it better matches expenses to revenue generated by a company that produced 200,000 units.

Uploaded by

scrollen.salven0i
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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5503791

1a

Date Received Sold Balance


Total
December Units mit Toten Units
Gut Geht Total Units Cotuit
UM CRM

1 400 250 100.000 0 400 250 100.000


2601,000
1000 260 0 1000 260 260,000
1400 360,000

5 450 257.14 115714 450 257.19244283


24 700 257.19 179998 250 257.14 64285
28 800 262 209600 800 262 209600
1050 260.89 273885
2200 569600 450 2953m

Total amount ofstainless steels DM273,885

Cost
po mit as at 31 1221 273885
1050

260.84
b
7 12 21 Cash 4300
Sales revenue 43000
Cost of Sales 43000
43000
Inventory
15 12 21 Cash 300
Sales revenue 158300
Cost of Sales 158300
158300
Inventory
2 a i Depreciation expense ofequipment in 2020

Straight the RM500,000


method 40.0001 10

RM46,000
Units ofproduction method 500,000 40,000 20,000,000 3,009000

DM9.300

b net book value


of equipment at end of 2021 reducedbalance method
using

initial net book value


500,000 46,000 RM454,000
net book value 454,000 x 0.9
RM 409,600

c Best method of depreciation is units of productionmethod because it's produes


product product will be more accurate in matching expenses
to revenue

company produce 200,000 units

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