PLEASE PROVIDE CALCULATIONS AND EXPLANATIONS FOR THE ATTACHMENT ACCA 105.docx 1. Use the following information to calculate cost of goods sold under each of three methods: (a) FIFO, (b) LIFO, and (c) average-cost. Assume the PERPETUAL inventory system is used. (Show your work.) Apr. 1 Beginning inventory 50 units @ $20 8 Sales 70 units 17 Purchases 150 units @ $24 24 Sales 110 units 30 Purchases 30 units @ $25 22wfa2/ PLACE CALCUATIONS AND EXPLANATIONS FOR ALL QUESTIONS. The following independent transactions took place for a retail company: a. Purchased land and a building on the land for $960,000. The appraised values of the land and building at the time of purchase are $350,000 and $650,000, respectively. b. Paid $5,000 for a sewage system, $15,000 for a parking lot, $1,000 to tear down a shack on the land just purchased, and $10,000 for a block wall. c. Purchased a truck two years ago for $18,000 with an original six-year estimated useful life and $3,000 residual value. After two full years of use, the residual value was revised to $4,000 and the useful life was revised to a total of seven years. Record the depreciation for the third year assuming the straight-line method. d. Purchased a machine on May 1, 2007 for $15,000. The machine has an estimated useful life of 10,000 hours and no residual value. Record depreciation for 2007 under the production method assuming the machine was used for 2,000 hours during 2007. The company uses a calendar-year reporting period.