Jolie Company uses a perpetual inventory system. The company records show the following...
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Accounting
Jolie Company uses a perpetual inventory system. The company records show the following data for its only product. Compute and report the cost of goods sold for October 2020 and cost of the ending inventory on 31 October 2020 under: (a) FIFO method. (6 marks) (b) Weighted average method. (6 marks) Part B Saturn Pte Ltd, with accounting year ending on 31 December, bought a machine for $170,000 on 1 May 2018 . The machine was estimated to have a useful life of 5 years and a residual value of $20,000. The company adopts the straight-line method of depreciation. (a) Analyse the above and prepare journal entries to record the depreciation expense for the years 2018 and 2019. Narrations are not required. (5 marks) (b) Identify the relevant accounts and show how the machine would be presented in the Statement of Financial Position as at 31 December 2019. (4 marks) (c) Describe briefly the organization you are working in or choose one you are familiar with. Identify one (1) major fixed asset used in the operations of that organization. Explain whether it is more appropriate to use the straight-line method or double-declining method of depreciation for that asset. (4 marks)
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