PROBLEM 11-1 ORCA COMPANY

* FIFO INVENTORY-JANUARY 1 7,100,000.00

WEIGHTED AVERAGE INVENTORY-JANUARY 1 (7,700,000.00)
INCREASE IN BEGINNING INVENTORY (600,000.00)

INVENTORY-JANUARY 1 600,000.00
RETAINED EARNINGS 600,000.00

* FIFO INVENTORY-DECEMBER 31 7,900,000.00

WEIGHTED AVERAGE INVENTORY-DECEMBER 31 (8,300,000.00)
INCREASE IN BEGINNING INVENTORY (400,000.00)

INVENTORY-JANUARY 1 400,000.00
RETAINED EARNINGS 400,000.00
PROBLEM 11-2 GODDARD COMPANY
* WEIGHTED AVERAGE INVENTORY-2019 5,400,000.00
FIFO INVENTORY-2019 (4,500,000.00)
DECREASE IN BEGINNING INVENTORY 900,000.00

RETAINED EARNINGS 900,000.00

INVENTORY-2019 900,000.00

* WEIGHTED AVERAGE INVENTORY-2020 7,100,000.00

FIFO INVENTORY-2020 (7,800,000.00)
INCREASE IN BEGINNING INVENTORY (700,000.00)

INVENTORY-JANUARY 1 700,000.00
RETAINED EARNINGS 700,000.00

* WEIGHTED AVERAGE INVENTORY-2019 7,800,000.00

FIFO INVENTORY-2019 (7,000,000.00)
DECREASE IN BEGINNING INVENTORY 800,000.00

RETAINED EARNINGS 800,000.00

INVENTORY-2019 800,000.00
PROBLEM 11-BLUE COMPANY

CARRYING AMOUNT 6,000,000.00 6,000,000.00

USEFUL LIFE 6.00 6.00
ACCUMULATED DRECIATION 1,000,000.00 1,000,000.00
INCURRED YEARS 3.00 2.00
ACCUMULATED DRECIATION 3,000,000.00 2,000,000.00

CARRYING AMOUNT 6,000,000.00 6,000,000.00

ACCUMULATED DEPRECIATION (3,000,000.00) (2,000,000.00)
CARRYING AMOUNT 3,000,000.00 4,000,000.00
USEFUL LIFE 5.00 6.00
ACCUMULATED DEPRECIATION 600,000.00 666,666.67

DEPRECIATION 600,000.00 666,666.67

ACCUMULATED DEPRECIATION 600,000.00 666,666.67

PROBLEM 11-4 BLUE COMPANY

CARRYING AMOUNT 5,280,000.00 5,280,000.00 5,280,000.00

USEFUL LIFE 8.00 8.00 8.00
ACCUMULATED DRECIATION 660,000.00 660,000.00 660,000.00
INCURRED YEARS 3.00 2.00 4.00
ACCUMULATED DRECIATION 1,980,000.00 1,320,000.00 2,640,000.00

CARRYING AMOUNT 5,280,000.00 5,280,000.00 5,280,000.00

ACCUMULATED DEPRECIATION (1,980,000.00) (1,320,000.00) (2,640,000.00)
RESIDUAL VALUE (480,000.00) (480,000.00) (480,000.00)
CARRYING AMOUNT 2,820,000.00 3,480,000.00 2,160,000.00
USEFUL LIFE 3.00 4.00 2.00
ACCUMULATED DEPRECIATION 940,000.00 870,000.00 1,080,000.00

DEPRECIATION 940,000.00 870,000.00 1,080,000.00

ACCUMULATED DEPRECIATION 940,000.00 870,000.00 1,080,000.00
 PROBLEM 11-5 MILAN COMPANY

CARRYING AMOUNT 6,000,000.00 6,000,000.00

RESIDUAL VALUE (600,000.00) (600,000.00)
CARRYING AMOUNT 5,400,000.00 5,400,000.00
USEFUL LIFE 20.00 20.00
ACCUMULATED DRECIATION 270,000.00 270,000.00
INCURRED YEARS 2.00 1.00
ACCUMULATED DRECIATION 540,000.00 270,000.00

CARRYING AMOUNT 5,400,000.00 5,400,000.00

ACCUMULATED DEPRECIATION (540,000.00) (270,000.00)
RESIDUAL VALUE (200,000.00) (200,000.00)
CARRYING AMOUNT 4,660,000.00 4,930,000.00
USEFUL LIFE 8.00 9.00
ACCUMULATED DEPRECIATION 582,500.00 547,777.78

DEPRECIATION 582,500.00 547,777.78

ACCUMULATED DEPRECIATION 582,500.00 547,777.78

PROBLEM 11-6 ACUTE COMPANY

BUILDING MACHINERY FURNITURE
CARRYING AMOUNT 15,000,000.00 15,000,000.00 10,500,000.00 10,500,000.00 3,500,000.00 3,500,000.00
USEFUL LIFE 15.00 15.00 10.00 10.00 7.00 7.00
ACCUMULATED DRECIATION 1,000,000.00 1,000,000.00 1,050,000.00 1,050,000.00 500,000.00 500,000.00
INCURRED YEARS 3.00 2.00 3.00 2.00 3.00 2.00
ACCUMULATED DRECIATION 3,000,000.00 2,000,000.00 3,150,000.00 2,100,000.00 1,500,000.00 1,000,000.00

CARRYING AMOUNT 15,000,000.00 15,000,000.00 10,500,000.00 10,500,000.00 3,500,000.00 3,500,000.00

ACCUMULATED DEPRECIATION (3,000,000.00) (2,000,000.00) (3,150,000.00) (2,100,000.00) (1,500,000.00) (1,000,000.00)
CARRYING AMOUNT 12,000,000.00 13,000,000.00 7,350,000.00 8,400,000.00 2,000,000.00 2,500,000.00
USEFUL LIFE 7.00 8.00 4.00 5.00 2.00 3.00
ACCUMULATED DEPRECIATION 1,714,285.71 1,625,000.00 1,837,500.00 1,680,000.00 1,000,000.00 833,333.33

DEPRECIATION 1,714,285.71 1,625,000.00 1,837,500.00 1,680,000.00 1,000,000.00 833,333.33

ACCUMULATED DEPRECIATION 1,714,285.71 1,625,000.00 1,837,500.00 1,680,000.00 1,000,000.00 833,333.33

PROBLEM 11-7 AKLAN COMPANY

SALES 1,600,000.00
INVENTORY (300,000.00)
RETAINED EARNINGS 1,300,000.00
PROBLEM 11-8 BRAZILIA COMPANY

CARRYING AMOUNT 3,072,000.00 3,072,000.00

USEFUL LIFE 9.00 8.00
ACCUMULATED DRECIATION 341,333.33 384,000.00

DEPRECIATION 341,333.33 384,000.00

ACCUMULATED DEPRECIATION 341,333.33 384,000.00

PROBLEM 11-9 BLUE COMPANY

PATENT
CARRYING AMOUNT 3,000,000.00 3,000,000.00
USEFUL LIFE 10.00 10.00
ACCUMULATED DRECIATION 300,000.00 300,000.00
INCURRED YEARS 4.00 5.00
ACCUMULATED DRECIATION 1,200,000.00 1,500,000.00

CARRYING AMOUNT 3,000,000.00 3,000,000.00

ACCUMULATED DEPRECIATION (1,200,000.00) (1,500,000.00)
CARRYING AMOUNT 1,800,000.00 1,500,000.00
USEFUL LIFE 4.00 3.00
ACCUMULATED DEPRECIATION 450,000.00 500,000.00

DEPRECIATION 450,000.00 500,000.00

ACCUMULATED DEPRECIATION 450,000.00 500,000.00

EQUIPMENT
CARRYING AMOUNT 8,000,000.00
ACCUMULATED DRECIATION (3,400,000.00) PATENT 450,000.00 500,000.00
RESIDUAL VALUE (200,000.00) EQUIPMENT 440,000.00 440,000.00
CARRYING AMOUNT 4,400,000.00 TOTAL CHARGE 890,000.00 940,000.00
USEFUL LIFE 10.00
ACCUMULATED DRECIATION 440,000.00

DEPRECIATION 440,000.00
ACCUMULATED DEPRECIATION 440,000.00