EXAMPLES
 1.   A firm bought 150 units of materials inventory on account. Unit price is 220 TL + 18% VAT. The firm also paid 700 TL + 18% VAT for transportation. What is the unit cost? Make the accounting record.
 
2.   A firm imported 90 units of merchandise inventory. Unit cost is 130 Euro (including transportation).
 
      a.   The firm paid the purchase price in advance (1 Euro = 2.36 TL). The bank charged 280 TL transfer fee.
      b.   The firm received the goods. The firm paid 1,950 TL import duty, 5,900 TL excise tax, and 6,400 TL VAT.
c.      The firm paid 800 TL + 18 % VAT to a customs brokerage firm.
 
Make the accounting records at each step. What is the unit cost?
 
3.   A firm imported 200 units of merchandise inventory on account. Unit cost is 90 USD (including transportation).
 
      a.   The firm paid 1,900 TL fund before receiving the goods.
      b.   The firm received the goods (1 USD = 1.75 TL). The firm paid 2,200 TL import duty, 6,700 TL excise tax, and 7,300 TL VAT.
      c.   The firm paid 900 TL + 18 % VAT to a customs brokerage firm.
 
Make the accounting records at each step. What is the unit cost?
 
4.   A firm imported 250 units of materials inventory. Unit cost is 170 Euro (including transportation).
 
      a.   The firm paid 6,000 TL fund before receiving the goods.
      b.   The firm accepted the draft sent by the exporter and received the goods (1Euro = 2.38 TL). The firm paid 8,000 TL import duty, and 18,600 TL VAT.
      c.   The firm paid 1,000 TL + 18 % VAT to a customs brokerage firm.
 
Make the accounting records at each step. What is the unit cost?
 
5.   Beginning balance for an inventory item is 300 units at a cost of 20 TL per unit.
 
      Purchased 400 units at a cost of 23 TL per unit.
      Sold 550 units
      Purchased 250 units at a cost of 18 TL per unit
      Purchased 300 units at a cost of 17 TL per unit
      Sold 600 units
      Purchased 200 units at a cost of 21 TL per unit
      Sold 230 units
 
      Calculate cost of merchandise sold in each sale by using FIFO and weighted average methods.
 
6.    The firm released direct materials costing 25,000 TL to the production from the materials inventory. Make the cost accounting record.
 
7.   The firm incurred direct labor cost amounting 42,000 TL in this month. Make the cost accounting record (don't make credit record).
 
8.     Make the cost accounting records of the following transactions:
 
       a. The firm paid 20,000 TL + 18 % VAT to a transportation firm for the transportation of its employees. (80 % of the employees work in manufacturing, 20 % of the employees work in administrative functions).
 
      b. The firm released indirect materials costing 10,000 TL to the production from the materials inventory.
 
       c.  Labor cost of the factory manager, production planners and supervisors is 90,000 TL in this month (don't make credit record).
 
        d.  The firm paid 8,000 TL + 18 % VAT to another firm for the maintenance of its machines used in production.
 
        e.  The firm paid 120,000 for the natural gas that is used to run the machines.
 
9.   
          a.  Beginning balances of the inventories are as follows:
 
              Materials inventory : 80,000 TL
              Work-in process: 110,000 TL
              Finished goods : 45,000 TL
 
             Don't make any record. Post them to the t-accounts.
 
         b.  During the period, the firm bought materials costing 120,000 TL. (Don't make any record. Post the amount to the t-account).
 
         c.  Debit total of 710 Direct materials cost is 130,000 TL, debit total of 720 direct labor cost is 70,000 TL, debit total of 730 manufacturing overhead is 150,000 TL. Make the transfer to work-in process record and post the amounts to the t-accounts.
 
         d.  During the period, products costing 400,000 TL were completed and transferred to finished goods. Make the accounting record and post the amounts to the t-accounts.
 
           e.   During the period, finished goods costing 370,000 TL were sold. Make the accounting record and post the amounts to the t-accounts.
 
           f.   What are the ending values of the materials inventory, work-in process, and finished goods?
 
10.   A firm rented an apartment flat whose monthly rent is 5,000 TL on 01 June 2012. The firm paid two-year rent in advance from the bank account. The apartment flat is used for administrative purposes.
 
      a.   Make the accounting record on 01 June 2012
      b.   Make the accounting record at the end of June
   c.   Make the accounting records (two records) on 31 December 2012
 
11.   A firm established another firm by investing 800,000 TL. This investment represents 100 % control right. Make the accounting record.
 
12.   A firm buys shares of another firm by paying 80,000 TL. These shares give the firm 7 % control right. Make the accounting record.
 
13.   a. A firm buys shares of another firm by paying 300,000 TL. These shares give the firm 25 % control right. Make the accounting record.
      b.   The firm sells its shares in the other firm for 340,000 TL. Make the accounting record.
      c.   The firm sells its shares in the other firm for 250,000 TL. Make the accounting record.
 
14. The firm orders a machine to a manufacturer in OSTÄ°M. Cost of the machine is 700,000 TL + 18% VAT (including transportation and installation). The firm pays 272,000 TL in advance. When the firm receives the machine pays another 200,000 TL+ total VAT and gave a forward-dated check for the remaining amount.
 
15. The firm imported machinery and equipment whose purchase price is 2,500,000 Euro (including transportation up to the Turkish Customs).
 
      a.   The firm opened a letter of credit (L/C). The bank charged 12,000 TL for this service.
      b.      Machinery and equipment arrived at the customs. The firm paid the purchase price to the bank (1 Euro = 2.37 TL), received the machinery and equipment from the customs, and paid 296,000 TL import duty, 1,120,000 TL VAT.
      c.   The firm paid 25,000 TL + 18 % VAT to another firm for domestic transportation (transportation inside Turkey) and installation.
 
Make the accounting record at each step. What is the total cost of the machinery and equipment?
 
16. The firm buys an apartment flat to be used for administrative offices. Purchase price is 500,000 TL + 18% VAT. The firm pays 4,000 TL title fee. Make the accounting record.
 
17. The firm buys a truck to be used to deliver the goods. The invoice is as follows:
 
Price          : 40,000 TL
Excise tax  : 15,000 TL
VAT           : 9,900 TL
Total    :       64,900 TL
 
Make the accounting record.
 
18. A hospital has a MR equipment whose total cost is 1,200,000 TL. Economic life is 5 years.
      a. Prepare a table to calculate depreciation in each year by using double declining balance method.
      b.   Make the quarterly accounting record for the depreciation in the third year.
      c.   What would be the depreciation in each year if the firm used straight-line method? What would be the quarterly depreciation?
 
19. A textile manufacturer has a machine whose total cost is 2,500,000 TL. Economic life is 10 years.
      a.      Prepare a table to calculate depreciation in each year by using double declining balance method. (Up to the third year)
      b.   Make the monthly accounting record for the depreciation in the third year.
      c.   What would be the depreciation in each year if the firm used straight-line method? What would be the monthly depreciation?
 
20. A firm has a building whose total cost is 20,000,000 TL. Economic life is 50 years. This building is used for administrative purposes.
      a.      Prepare a table to calculate depreciation in each year by using double declining balance method. (Up to the third year)
      b.   Make the quarterly accounting record for the depreciation in the third year.
      c.   What would be the depreciation in each year if the firm used straight-line method? What would be the quarterly depreciation?
 
21. A firm has a machinery and equipment whose total cost is 1,500,000 TL and accumulated depreciation is 900,000 TL.
      a.   Make the accounting record if the firm sells this machinery and equipment for 700,000 TL.
      b.   Make the accounting record if the firm sells this machinery and equipment for 450,000 TL.
 
22. A firm bought a franchise and paid 150,000 TL.
 
23. A firm bought the right to operate a harbor by paying 25,000,000 TL.
 
24. A firm bought a patent by paying 2,500,000 Euro. (1 Euro = 2.35 TL)
 
25. A firm bought a brand and paid 30,000,000 TL. Economic life is 15 years.
      a.      Prepare a table to calculate amortization in each year by using double declining balance method. (Up to the third year)
      b.   Make the quarterly accounting record for the amortization in the third year.
      c.   What would be the amortization in each year if the firm used straight-line method? What would be the quarterly depreciation?
 
26. A and B are merged. A is the acquiring firm, B is the acquired firm. The market value of B’s assets is 280,000,000 TL, liabilities of B is 180,000,000 TL. A paid 140,000,000 TL to merge with B. Make the accounting record of this transaction: