# Assignment Exercise 8-1

AssignmentExercise 8-1

a1.

 Assumptions FIFO Inventory Effect Sales (Revenue) \$90,000 Cost of Sales Beginning Inventory 500 units @ \$50 \$25,000 Plus Purchases 400 units @\$50=\$20,000 100 units @\$65=\$6,500 400 units @\$80=\$32,000 \$58,500 Subtotal \$83,500 Less: Ending Inventory 400 units @\$80 \$(32,000) Cost of goods sold \$51,500

a2.

Costof Goods sold/Sales*100

=51,500/90,000*100

=57.22%

b1.

 Assumptions LIFO Inventory Effect Sales (Revenue) \$90,000 Cost of Sales Beginning Inventory 500 units @ \$50 \$25,000 Plus Purchases 400 units @\$50=\$20,000 100 units @\$65=\$6,500 400 units @\$80=\$32,000 \$58,500 Subtotal \$83,500 Less : Ending Inventory 400 units @\$50 \$(20,000) Cost of goods sold \$63,500

b2.

Costof Goods sold/Sales*100

=63,500/90,000*100

=70.56%

c.

Thereis a difference in values calculated for the FIFO and LIFO. WhereasFIFO assigns the final value of the goods purchased to the firstunits purchased, LIFO assigns the value of the initial goodspurchased to the last units purchased.

AssignmentExercise 8-2

1. Using the FIFO information

 Beginning Inventory \$25,000 Plus: Ending inventory \$32,000 Average Inventory \$28,500 Cost of Goods Sold \$51,500 Inventory Turnover 1.81
1. Using the LIFO information

 Beginning Inventory \$25,000 Plus: Ending inventory \$20,000 Average Inventory \$22,500 Cost of Goods Sold \$63,500 Inventory Turnover 2.82

AssignmentExercise 8-3

1. Straight line Depreciation.

Laboratoryequipment: =300,000-(5%*300,000)

=285,000

=285,000/5

=57,000

=720,000

=720,000/7

=102,857.14

1. Double-declining balance depreciation

Laboratoryequipment:

Straightline rate: 1/5=20%

Doublethe rate: 20%*2=40%

Firstyear depreciation expense: 300,000*40%=120,000

Secondyear depreciation expense: 180,000*40%=72,000

Thirdyear depreciation expense: 108,000*40%=43,200

Fourthyear depreciation expense: 64,800*40%=25,920

Fifthyear depreciation expense: 38,880*40%=15,552

Straightline rate: 1/7=14.29%

Doublethe rate: 14.29*2=28.58%

Firstyear depreciation expense: 800,000*28.58%=228,640

Secondyear depreciation expense: 571,360*28.58%=163,294.69

Thirdyear depreciation expense: 408,065.31*28.58%=116,625.07

Fourthyear depreciation expense: 291,440.24*28.58%=83,293.62

Fifthyear depreciation expense: 208,146.62*28.58%=59,488.30

Sixthyear depreciation expense: 148,658.32*28.58%=42,486.55

Seventhyear depreciation expense 106,171.77*28.58%=30,343.89

AssignmentExercise 8-4

1. Company X purchases a machine at cost \$100,000. The machine has a life expectancy of 5 years and no salvage value.

 Year# Annual depreciation Remaining balance Beginning balance 100,000 1 20,000 80,000 2 20,000 60,000 3 20,000 40,000 4 20,000 20,000 5 20,000 0
1. Assume the machine has a salvage value of \$20,000

 Year# Annual depreciation Remaining balance Beginning balance 100,000 1 20,000 80,000 2 20,000 80,000 3 20,000 60,000 4 20,000 40,000 5 20,000 20,000

AssignmentExercise 8-5

1.

 Year Cost(to be depreciated)= \$10,000 Units of service per year *Depreciation Per unit Annual Depreciation Expense Accumulated Depreciation Reserve For Depreciation Net Remaining Undepreciated Cost(Net Book Value) 1 1,000 2 2,000 2,000 8,000 2 900 2 1,800 3,800 6,200 3 800 2 1,600 5,400 4,600 4 1,100 2 2,200 7,000 2,400 5 1,200 2 2,400 10,000 0 Total Units 5,000

AssignmentExercise 9-1

Workingdays= 5 days

2*52=104 non paid days

364-104=260 paid days

Netpaid days worked: RN= 260 – (35+5) = 220 days

LPN=260-(35+3)=222 days

NA=260-(35+2)=223 days

2.

RN=364/220=1.6545LPN=364/222=1.6396NA=364/223=1.6323

AssignmentExercise 9-2

1.

 Position Shift 1 Day Shift 2 Evening Shift 3 Night 24-Hour Scheduling Total Emergency Room Intake 1 1 1 3 8-hour shifts To cover position 7 days per week equals FTEs of: 1.4 1.4 1.4 4.2 FTEs

2.

1employee = 40 hrs. per week

18-hr shift*7 days per week=56 hrs. On duty

Tocover 7 days per week requires: 56/40= 1.4

=1.4FTEs