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ez Company reported the following current-year data for its only product. The company uses a periodic inventory syste ng inventory consists of 360 units-120 from each of the last three purchases. anuary 1 arch 7 Beginning inventory Purchase ly 28 Purchase ctober 3 Purchase ecember 19 Purchase Totals 220 units @ $2.80 480 units @ $3.25 1,120 units @ $3.30 1,000 units @ $3.60 400 units @ $3.70 3,220 units = $ 616 =1 1,560 = 3,696 3,600 =1 1,480 $ 10,952 1) Determine the cost assigned to ending inventory and to cost of goods sold for the following. Which method yields the highest net income?

ez Company reported the following current-year data for its only product. The company uses a periodic inventory syste ng inventory consists of 360 units-120 from each of the last three purchases. anuary 1 arch 7 Beginning inventory Purchase ly 28 Purchase ctober 3 Purchase ecember 19 Purchase Totals 220 units @ $2.80 480 units @ $3.25 1,120 units @ $3.30 1,000 units @ $3.60 400 units @ $3.70 3,220 units = $ 616 =1 1,560 = 3,696 3,600 =1 1,480 $ 10,952 1) Determine the cost assigned to ending inventory and to cost of goods sold for the following. Which method yields the highest net income?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lopez Company reported the following current-year data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 360 units-120 from each of the last three purchases. January 1 Beginning inventory March 7 Purchase July 28 Purchase October 3 Purchase December 19 Purchase Totals 220 units @ $2.80 480 units @ $3.25 1,120 units @ $3.30 1,000 units @ $3.60 400 units @ $3.70 3,220 units = = $ 616 1,560 3,696 3,600 1,480 $ 10,952 (a-d) Determine the cost assigned to ending inventory and to cost of goods sold for the following. (e) Which method yields the highest net income? Complete this question by entering your answers in the tabs below. Req A to D Req E Determine the cost assigned to ending inventory and to cost of goods sold for the following. Note: Do not round intermediate calculations and round your answers to 2 decimal places. Ending Inventory Cost of Goods Sold (a) Specific identification (b) Weighted average (c) FIFO (d) LIFO Req A to D Req E>
Transcribed Image Text:Lopez Company reported the following current-year data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 360 units-120 from each of the last three purchases. January 1 Beginning inventory March 7 Purchase July 28 Purchase October 3 Purchase December 19 Purchase Totals 220 units @ $2.80 480 units @ $3.25 1,120 units @ $3.30 1,000 units @ $3.60 400 units @ $3.70 3,220 units = = $ 616 1,560 3,696 3,600 1,480 $ 10,952 (a-d) Determine the cost assigned to ending inventory and to cost of goods sold for the following. (e) Which method yields the highest net income? Complete this question by entering your answers in the tabs below. Req A to D Req E Determine the cost assigned to ending inventory and to cost of goods sold for the following. Note: Do not round intermediate calculations and round your answers to 2 decimal places. Ending Inventory Cost of Goods Sold (a) Specific identification (b) Weighted average (c) FIFO (d) LIFO Req A to D Req E>
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