January 1 Beginning inventory March 7 Purchase July 28 Purchase October 3 Purchase December 19 Purchase Totals 460 units @ $2.75 1,100 units @ $2.90 210 units @ $2.40 $ 504 1,265 3,190 3,136 1,224 $ 9,319 980 units @ $3.20 360 units @ $3.40 3,110 units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question

6

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 330 units-110 from each of the last three purchases.
July 28
January 1
March 7
Beginning inventory
Purchase
Purchase
October 3
Purchase
December 19
Purchase
Totals
210 units @ $2.40
460 units @ $2.75
1,100 units @ $2.90
980 units @ $3.20
360 units @ $3.40
3,110 units
$ 504
1,265
3,190
3,136
1,224
$ 9,319
(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?
Answer is not complete.
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.
Cost of Goods
Sold
Ending
Inventory
(a) Specific identification
$ 1,045.00
$
8,274.00
(b) Weighted average
S
990.00
$
8,329.00 ×
(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 330 units-110 from each of the last three purchases. July 28 January 1 March 7 Beginning inventory Purchase Purchase October 3 Purchase December 19 Purchase Totals 210 units @ $2.40 460 units @ $2.75 1,100 units @ $2.90 980 units @ $3.20 360 units @ $3.40 3,110 units $ 504 1,265 3,190 3,136 1,224 $ 9,319 (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? Answer is not complete. 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. Cost of Goods Sold Ending Inventory (a) Specific identification $ 1,045.00 $ 8,274.00 (b) Weighted average S 990.00 $ 8,329.00 × (c) FIFO (d) LIFO < Req A to D Req E >
Expert Solution
steps

Step by step

Solved in 6 steps

Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education