Reasons Why ABC Inc Would Decide to Dispose Its Plant Assets

College of Administrative and Financial Sciences Assignment. The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page. • Students must mention question number clearly in their answer. • Late submission will NOT be accepted. • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). • Submissions without this cover page will NOT be accepted. Assignment Question(s): (Marks. 5) Q1. Come up with a merchandise company scenario, where this company performed four purchasing transactions and two sales transactions. Then, calculate the balance of ending inventory and cost of goods sold after each sales transaction, assuming the company used the FIFO, Moving Average Cost. Use the following table to answer. (2 mark) Answer: Date Purchase Sales (COGS) Ending inventory Q2. ABC Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the current month. Prepare a schedule computing estimate retail inventory using the conventional methods. Round numbers. (1 mark). Cost Retail Beginning Inventory 78,000 105,000 Net purchases 214,000 292,000 Net markups 14,000 Net markdown 3,700 Normal spoilage 2,300 Abnormal spoilage 3,400 5,500 Sales 310,000 Employees’ discount 11,200 Answer: Q3. In your own words, discuss (1) the different reasons why a company would decide to dispose its plant assets, (2) the steps needs to be done to account for the disposal. (3) Give a numeric example. (2 mark). Answer: …