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 periodic inventory costing system and prices its ending inventory on the basis of (a) FIFO and (b) Moving weighted average: (Round "average cost per unit" to 2 decimal places. Do not round intermediate calculations. Round your final answers to 2 decimal places.)
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 periodic inventory costing system and prices its ending inventory on the basis of (a) FIFO and (b) Moving weighted average: (Round "average 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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In 2020, Fresh Express Company sold 2,590 units of its product on September 20 and 3,450 units on December 22, all at a price of $99 per unit. Incurring operating expenses of $11 per unit sold, it began the year with and made successive purchases of the product as follows:
| January 1 beginning inventory | 690 | units | @ | $ | 44 | per unit |
| Purchases: | ||||||
| February 20 | 1,590 | units | @ | $ | 46 | per unit |
| May 16 | 790 | units | @ | $ | 50 | per unit |
| December 11 | 3,390 | units | @ | $ | 51 | per unit |
| Total | 6,460 | units |
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 periodic inventory costing system and prices its ending inventory on the basis of (a) FIFO and (b) Moving weighted average: (Round "average cost per unit" to 2 decimal places. Do not round intermediate calculations. Round your final answers to 2 decimal places.)
Transcribed Image Text:FRESH EXPRESS COMPANY
Income Statement Comparing FIFO and
Moving Weighted Average Inventory Costing Methods
For Year Ended December 31, 2020
FIFO
Weighted Average
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