1. Valuation of inventories

2. 2) For the same case, use the method of weighted arithmetical average with the continuously counted price

3. 3) For the same case, use the method of weighted arithmetical average with the price counted periodically at the beginning of each month (1.3. or 28.2.). Find out the consumption 17.3. and 29.3. We expect the input price from 28.2. 14,- CZK. Find out the average price for April. Valuation of Inventories

4. To remind you Depreciation is defined as the value of an asset over its useful life. How depreciation is calculated determines how much of a depreciation deduction you can take in any one year, so it is important to understand the methods of calculating depreciation. Streight- line depreciation The formula for calculating annual depreciation on an asset is: The useful life of the asset Less the salvage value of the asset at the end of its useful life Divided by the cost of the asset.

5. Depreciation The price of the car is 350 000 CZK. This asset is in the category 1 for depreciation. Fill in the table. a) use straight line depreciation method b) use accelerated method YearDepr. rateDeprec. in CZKRezidual value 1 2 3 4

6. Depreciation The company ownes a tractor. Use both methods for its depreciation. Fill in the data in the table again. YearDeprec. rateDeprec. in CZKRezidual value