Assume that united technologies corporation is evaluating a proposal to change the company's manual design system to a computer-aided design (cad) system. the proposed system is expected to save 13,500 design hours per year; an operating cost savings of $55 per hour. the annual cash expenditures of operating the cad system are estimated to be $300,000. the cad system requires an initial investment of $750,000. the estimated life of this system is five years with no salvage value. the tax rate is 35 percent, and united technologies uses straight-line depreciation for tax purposes. united technologies has a cost of capital of 14 percent.

Waterway company’s record of transactions for the month of april was as follows. purchases sales april 1 (balance on hand) 672 @ $6.00 april 3 560 @ $11.00 4 1,680 @ 6.08 9 1,568 @ 11.00 8 896 @ 6.41 11 672 @ 12.00 13 1,344 @ 6.51 23 1,344 @ 12.00 21 784 @ 6.61 27 1,008 @ 13.00 29 560 @ 6.79 5,152 5,936 (a) calculate average-cost per unit. (b) assuming that periodic inventory records are kept in units only, compute the inventory at april 30 using lifo and average-cost. (c) assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) fifo and (2) lifo. (d) compute cost of goods sold assuming periodic inventory procedures and inventory priced at fifo.