calculate the inventory depreciation expense for june using a 25% depreciation rate.\n(in $000) begin inv…

calculate the inventory depreciation expense for june using a 25% depreciation rate.\n(in $000) begin inv. purchases cogs\njune 50 20 60\njuly 10 70 50\naugust 30 40 20

calculate the inventory depreciation expense for june using a 25% depreciation rate.\n(in $000) begin inv. purchases cogs\njune 50 20 60\njuly 10 70 50\naugust 30 40 20

Answer

Explanation:

Step1: Calculate June's ending inventory

Ending Inv. = Begin Inv. + Purchases - COGS For June, Ending Inv. = $50 + 20-60=10$ (in $000$)

Step2: Calculate depreciation expense

Depreciation Expense = Ending Inv. × Depreciation rate Depreciation Expense = $10\times0.25 = 2.5$ (in $000$)

Answer:

$2,500$