During 2020, Fresh Express Company sold 2,400 units of its product on September 20 and 2,500 units on Dece of $80 per unit. Incurring operating expenses of $15 per unit sold, it began the year with and made successive purchases of the product as follows: January 1 beginning inventory Purchases: February 20 May 16 December 11 Total 500 units @$ 25 per unit 1,400 units @$ 27 600 units @$ 31 3,200 units @$ 32 5,700 units per unit per unit per unit Required: Prepare a comparative income statement for the company, showing in adjacent columns the profits earned from the sale of the product, assuming the company uses a perpetual inventory system and prices its ending inventory on the basis of (a) FIFO and (b) Moving weighted average: (Round "Cost per unit" to 2 decimal places. Do not Round intermediate calculations. Round your final answers to 2 decimal places.)
During 2020, Fresh Express Company sold 2,400 units of its product on September 20 and 2,500 units on Dece of $80 per unit. Incurring operating expenses of $15 per unit sold, it began the year with and made successive purchases of the product as follows: January 1 beginning inventory Purchases: February 20 May 16 December 11 Total 500 units @$ 25 per unit 1,400 units @$ 27 600 units @$ 31 3,200 units @$ 32 5,700 units per unit per unit per unit Required: Prepare a comparative income statement for the company, showing in adjacent columns the profits earned from the sale of the product, assuming the company uses a perpetual inventory system and prices its ending inventory on the basis of (a) FIFO and (b) Moving weighted average: (Round "Cost per unit" to 2 decimal places. Do not Round intermediate calculations. Round your final answers to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![During 2020, Fresh Express Company sold 2,400 units of its product on September 20 and 2,500 units on December 22, all at a price
of $80 per unit. Incurring operating expenses of $15 per unit sold, it began the year with and made successive purchases of the
product as follows:
January 1 beginning inventory
Purchases:
February 20
May 16
December 11
Total
500 units @$25 per unit
per unit
1,400 units @$27
600 units @$ 31
3,200 units @$ 32
5,700 units
per unit
per unit
Required:
Prepare a comparative income statement for the company, showing in adjacent columns the profits earned from the sale of the
product, assuming the company uses a perpetual inventory system and prices its ending inventory on the basis of (a) FIFO and (b)
Moving weighted average: (Round "Cost per unit" to 2 decimal places. Do not Round intermediate calculations. Round your final
answers to 2 decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa612f01d-9a8d-43fe-8b0f-25ee746a83ed%2F58125c72-970d-4d28-b576-e66f638e2a3a%2Fm2fgu5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:During 2020, Fresh Express Company sold 2,400 units of its product on September 20 and 2,500 units on December 22, all at a price
of $80 per unit. Incurring operating expenses of $15 per unit sold, it began the year with and made successive purchases of the
product as follows:
January 1 beginning inventory
Purchases:
February 20
May 16
December 11
Total
500 units @$25 per unit
per unit
1,400 units @$27
600 units @$ 31
3,200 units @$ 32
5,700 units
per unit
per unit
Required:
Prepare a comparative income statement for the company, showing in adjacent columns the profits earned from the sale of the
product, assuming the company uses a perpetual inventory system and prices its ending inventory on the basis of (a) FIFO and (b)
Moving weighted average: (Round "Cost per unit" to 2 decimal places. Do not Round intermediate calculations. Round your final
answers to 2 decimal places.)
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