Information Pertains to The Inventory of Hawk Project
Order ID:89JHGSJE83839 Style:APA/MLA/Harvard/Chicago Pages:5-10 Instructions:
Information Pertains to The Inventory of Hawk Project
P1. The following information pertains to the inventory of Hawk, Inc. during 2018.
Cost Retail
Inventory 1/1/2018 $150,000 $250,000
Net markups 60,000
Net markdowns (20,000)
Purchases 630,000 980,000
Purchase return & allowance (50,000) (80,000)
Freight-in 30,000
Abnormal Spoilage (10,000) (20,000)
Sales (640,000)
Instructions: Compute COGS for 2018 using
Information Pertains to The Inventory of Hawk Project
- Conventional average retail method and
- LIFO retail method.
P2. The December 31, 2018 inventory of the COYOTE Co. consisted of 3 products, for which the following information is provided.
Original Replacement Est. Disposal Selling Normal Profit
Product Cost Cost Cost Price on Sales
A $300 $280 $100 $500 30%
B 400 350 90 600 15
C 500 600 120 700 10
Instructions: Using the lower of cost or market approach on an individual item basis,
- Compute the inventory valuation that should be reported for each product on 12/ 31/2018.
- Prepare any necessary journal entries for inventory on 12/31/2018.
P3. Coyote Manufacturing bought a delivery truck for $60,000 on April 1, 2017. The registration fee for the truck was $4,000. Coyote estimated that the useful life would be four years or 200,000 miles and the residual value at the end of the useful life be $8,000. The mileage to be added to this truck during its useful life are
2017 2018 2019 2020 2021
Information Pertains to The Inventory of Hawk Project
40,000 50,000 52,000 48,000 10,000
Instructions:
- Prepare journal entries for the purchase of the truck on April 1. 2017.
- Compute depreciation expenses on the truck for the years ending on December 31 of 2017 and 2018 using the following methods; 1) Straight-line method,
2) Activity-based method,
3) Sum-of-the-years’-digit,
4) Double declining method.
- Coyote sold this truck for $30,000 on January 1, 2019
– Prepare any necessary journal entries for this sale using
1) the sum-of-years-digit method.
2) the straight-line method.
P4. During 2018, the COYOTE Company spent $4,000,000 for various construction projects which are qualified for capitalization of interest. The total expenditures of $4,000,000 were made as follows: $1,000,000 on 1/1/2018, $2,000,000 on 4/1/2018, and $1,000,000 on 10/1/2018. The company had the following debts outstanding as of December 31, 2018:
- 6%, 5-year note to finance construction of various assets, dated January 1, 2017, with interest
payable annually on each January 1. $1,500,000
- 8%, 15-year bonds issued at par on December 31, 2015, with interest payable annually on each December 31 $2,000,000
- 10%, 10-year note payable, dated January 1, 2017, with interest payable annually on each
January 1 $4,000,000
Instructions: Prepare the journal entries for the asset qualifying for capitalization of interest, interest expense, and interest payment on December 31, 2018.
P5. The following transactions involving intangible assets of ABC Co. occurred during 2018.
- On 1/1/2018, ABC’s application for the patent (#2) for a new production process was granted. Legal and registration fees for the patent were $40,000. The production process will be useful to ABC for ten years.
- On 1/1/2018 ABC finally won litigation against its patent #1 after spending $30,000 by the court judgment. The patent #1was purchased at $150,000 on 1/1/20015. The economic useful life of patent #1 is 30 years from its acquisition date.
- On December 31, 2018, ABC purchased XYZ co. for $2,500,000. XYZ co.’s balance sheet as of December 31, 2018 was as follow;
Book Value Fair market value
Total assets $ 2,200,000 $3,000,000
Total liabilities (800,000) (900,000)
Owners’ equity (1,400,000) (2,100,000)
Instructions: Prepare the following journal entries for ABC
1) any necessary journal entries for each transaction on the date of transactions.
2) any journal entries to record any resultant amortization of intangible assets on Dec. 31, 2018. If no journal is needed, write no J/E.
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The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
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The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
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Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score
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40-38 points
More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.
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Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.
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Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
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Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.
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There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
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