Abalone Corp. uses a periodic inventory system.

Jul 1 Beginning inventory 20 units @ $19 $ 380

7 Purchases 70 units @ $20 1,400

22 Purchases 10 units @ $22 220

A physical count of merchandise inventory on July 31 shows that 25 units are on hand.

Under the FIFO cost method, ending inventory at July 31 was

Question 1 options:

a)

$1,500

b)

$500

c)

$1,480

d)

$520

Jemima Ltd. purchased factory equipment for $200,000, and estimated that the equipment will have a $20,000 residual value at the end of its estimated 5-year useful life. If Jemima uses the double diminishing-balance method of depreciation, the depreciation expense for thesecondyear after purchase would be

Question 2 options:

a)

$48,000

b)

$72,000

c)

$43,200

d)

$80,000