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

calculate the inventory depreciation expense for june using a 15% depreciation rate.\n(in $000) begin inv. purchases cogs\njune 40 60 80\njuly 20 100 30\naugust 90 20 50

calculate the inventory depreciation expense for june using a 15% depreciation rate.\n(in $000) begin inv. purchases cogs\njune 40 60 80\njuly 20 100 30\naugust 90 20 50

Answer

Explanation:

Step1: Calculate June's ending inventory

Ending Inv. = Begin Inv. + Purchases - COGS For June, Begin Inv. = 40 (in $000), Purchases = 60 (in $000), COGS = 80 (in $000) Ending Inv. = 40 + 60 - 80 = 20 (in $000)

Step2: Calculate depreciation expense

Depreciation Expense = Ending Inv. × Depreciation rate Depreciation rate = 15% = 0.15 Depreciation Expense = 20×0.15 = 3 (in $000)

Answer:

$3,000