Assessment 3 Instructions: Plant Assets and Receivables Aging

Assessment 3

Use this template to record your answers to Parts 1–4 in Assessment 3, Section 1. Submit the completed template for your assessment.

Part 1: Receivables Reporting

Problem 1

Problem 2

Problem 3

Problem 4

Problem 5

Part 2: Inventory Issues

Problem 1

Problem 2

Problem 3

Because no date was associated with the units issued or sold, the periodic (rather than perpetual) inventory method must be assumed.

FIFO inventory cost:
LIFO inventory cost:
Average-cost:
Totals
Ending inventory

Problem 4

Computation of price indexes:

12/31/17

12/31/18

Dollar-value LIFO inventory 12/31/17:

Dollar-value LIFO inventory

Dollar-value LIFO inventory 12/31/18:

Dollar-value LIFO inventory

Problem 5

The inventoriable costs for 2018 are:

Inventoriable cost

Note: Freight-out is a selling expense. Interest on notes payable is a period expense. Neither is an inventoriable cost.

Part 3: Acquisition Costs of Realty

Item		Land		Land Improvements		Building		Other Accounts
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
(n)
(o)
(p)

Part 4: Depreciating Plant Assets

a)

1. Depreciable Base Computation:

2. Sum-of-the-years’-digits for 2018

3. Double-declining balance for 2018

b)