Exercise 1) Evaluation of Inventory:A company has collected the following data from the purchase and use of heating fuel fromits Business Statistics department for inventory management of the previous year:Date Amount purchased (liters) Purchase Price (EUR/liter)12.1.2006 15000 0,8014.2,2006 20000 0,7525.3.2006 6000 0,8128.6.2006 18000 0,9029.8.2006 33000 0,76Date Amount used/consumed(liters)30.9.2006 700031.10,2006 2300030.11.2006 900031.12.2006 11000a) Calculate the cost/use of material sold for the material(energy):Based on the following evaluation methods:- FIFO- HIFO- LIFO- average priceb) Book the transaction for the consumption of the fuel at the 31.12.2006 (1.1.-31.12.2006)correctly by using the FIFO-method and indicate the effect on the profit! (All the purchases ofthe fuel have been recorded yet!)Date Debit Credit Amount (EUR)31.12.2006Effect on the profit? 2Exercise 2) Depreciation:The following data for a machinery is available:Purchase price (incl. 20%VAT) 360 000 EURSalvage value (excl VAT) 10 000 EURuseful life 7 years(=estimated service life)production capacity 580 000 hours1st year: production (2006) 120 000 hours2nd year: production (2007) 160 000 hours3rd year: production (2008) 130 000 hours4th year: production (2009) 80 000 hours5th year: production (2010) 50 000 hours6th year: production (2011) 40 000 hours7th year: production (2012) 30 000 hoursa) Calculate the straight-line depreciation. (straight-line method)b) Calculate the depreciation based on the activity method.c) What other depreciation methods do you know?d) Calculate the depreciation for 2006 and the book value (31.12.2006) in accordance withthe Austrian (taxation) regulations (straight-line) if the machinery has been purchased at 30May 2006.e) Calculate the depreciation for 2006 and the book value (31.12.2006) in accordance withthe Austrian (taxation) regulations (straight line) if the machinery has been purchased at 5August 2006.

Attachment:- Accounting assignment.pdf