calculate the inventory depreciation expense for july using a 15% depreciation rate.\n(in $000) begin inv…

calculate the inventory depreciation expense for july using a 15% depreciation rate.\n(in $000) begin inv. purchases cogs\njune 60 20 50\njuly 30 30 40\naugust 20 60 40

calculate the inventory depreciation expense for july using a 15% depreciation rate.\n(in $000) begin inv. purchases cogs\njune 60 20 50\njuly 30 30 40\naugust 20 60 40

Answer

Answer:

$3$

Explanation:

Step1: Calculate July ending inventory

Ending\ Inv. = Begin\ Inv.+Purchases - COGS $=30 + 30-40=20$ (in $000$)

Step2: Calculate depreciation expense

Depreciation\ Expense=Ending\ Inv.\times Depreciation\ rate $=20\times0.15 = 3$ (in $000$)