1. International Paper Inc. uses the conventional retail inventory method to account for inventory. The following information related to 2016 operations
1. International Paper Inc. uses the conventional retail inventory method to account for inventory. The following information related to 2016 operations:
| Average | ||
| Cost | Retail | |
| Beginning inventory and purchases | $787,500 | $1,750,000 |
| Net markups | 95,000 | |
| Net markdowns | 82,000 | |
| Sales | 1,000,000 | |
Required: What amount should be reported as cost of sales for 2016?
2. A machine was purchased on January 1, 2012 for $870,000, estimated salvage value $125,000 and estimated service life of 10 years.
Required: If the annual depreciation expense for 2015 was $94,818; what depreciation method was used? Round all answers to the nearest whole dollar.
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"
