Question

In order to get a good rating, please explain how you arrived at each answer. Thank you.

EX. 9-6

Cash flows of a government must be presented in four categories, rather than the three used by businesses.

The following list of cash flows was taken from the statement of cash flows of Grand Junction’s internal service fund (with all amounts expressed in thousands):

Cash on hand at beginning of year                                          $122

Interest from investments                                                         45

Wages and salaries paid                                                             (3,470)

Purchases of supplies                                                                  (1,650)

Collections (for services) from other funds                               6,380

Interest on long-term debt                                                        (150)

Repayment of loans to other funds                                        (880)

Purchase of capital assets                                                          (900)

Proceeds of revenue bonds                                                      800

Purchases of investments                                                          (440)

Proceeds from sale of capital assets                                       23

Proceeds from sale of investments                                         33

Loans from other funds                                                             600

Recast the list into a statement of cash flows, adding a line for cash on hand at the end of the year.

Answer 1

solution:

1.ending inventory specific identification

date	units	$/unit	total cost
02-12-2017	170	35	5950
20-07-2017	50	29	1450
	220		7400

2.ending inventory FIFO

date	units	$/unit	total cost
02-12-2017	170	35	5950
04-09-2017	50	29	1450
	220		7400

ending inventory weighted averge method :

date	units	$/unit	total cost
beggining	170	23	3910
15 march	370	28	10360
20 july	370	29	10730
04 sep	270	33	8910
2 december	170	35	5950
	1350	$29.30	39860

average cost per unit = $3986/1350

= $29.30