Posted: July 12th, 2016

Calculate the gain or loss on the disposal of the car for each of the following independent situations?

The accounting records of Dolphin Company revealed the following information:

Total Manufacturing Costs….. $530,000
Work-In-Process Inventory, Jan 1 ….. $56,000
Work-In-Process Inventory, Dec 31 ….. $78,000
Finished-Goods Inventory, Jan 1 ….. $146,000
Finished-Goods Inventory, Dec 31 ….. $123,000

Dolphin’s cost of goods sold is:
A. $508,000.
B. $529,000.
C. $531,000.
D. $553,000.
E. some other amount.

Food to Go Delivery Service disposed of one of their delivery cars after using the car for 2 years. The records of the company provide the following informatiom:

Delivery car cost $30,000
Accumulated depreciation $10,000

Calculate the gain or loss on the disposal of the car for each of the following independent situations:

A. Food to Go sold the car to another company for $22,000

B. Food to go sold the car to another company for $17,000

C. The car was stolen from the parking lot and no insurance was carried on it for theft.
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