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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
6
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 >
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Step 1: Explain different methods of inventory valuation
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VIEWStep 3: Calculate COGS and ending inventory using weighted-average
VIEWStep 4: Calculate COGS and ending inventory using FIFO
VIEWStep 5: Calculate COGS and ending inventory using LIFO
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