ACCT 216 help A Guide to career/uophelp.com ACCT 216 help A Guide to career/uophelp.com | Page 7

2.FIFO
3.Average Cost
Hello fellow students of ACCT 216: This is week 4’s homework assign
ment. By now you should be familiar with the Inventory Costing Metho
ds, and if you’re not, I recommend you refer to your textbook for more d
etailed examples.
This is not as complicated as it appears but it is a bit tricky, once you un
derstand the methods you will find they are quite fun. Inventory is one o
f my
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ACCT 216 Week 5 Homework A
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Suppose the Atlanta Falcons purchased a new set of goal posts for $20,0
00 each. The Falcons expect the goal posts to have a useful life of five y
ears and a salvage value of $1,000 each when they sell them to a local hi
gh school.
Required:
1. Compute the first years depreciation using the following methods:
2.Suppose the team depreciates the asset based on number of goals score
d. The team anticipates goals to be 40 in the first year, 46 in the second y
ear, 38 in the third, 50 in the fourth when they win the Super Bowl, and
45 in the fifth year. Compute their first year depreciation using the units-
of-production method.
3.Which method do you think is the most representative of accurate depr
eciation of the goal posts?
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