QP Corp. sold 5,450 units of Its product at $45.50 per unit during the year and Incurred operating expenses of $6.50 peunit In selling the units. It began the year with 650 units In Inventory and made successive purchases of Its product asfollows.1 Beginning inventory20 Purchase650 units @ $18.50 per unit1,550 units @ $19.50 per unit750 units e $20.50 per unit450 units e $21.50 per unit3,350 units @ $22.50 per unitJan.Feb.16 PurchaseMayoct.3 Purchase11 PurchaseDec.Total6,750 unitsRequired:1. Prepare comparative Income statements for the three Inventory costing methods of FIFO, LIFO, and weighted averagewhich includes a detailed cost of goods sold section as part of each statement. The company uses a perlodic inventorysystem, and Its Income tax rate is 40%. (Round your average cost per unlt to 2 declmal places and round your finalanswers to nearest whole dollar amount.)QP CORP.Income Statements Comparing FIFO, LIFO, and Weighted AverageFor Year Ended December 31WeightedAverageFIFOLIFOSalesCost of goods sold:Beginning inventory, Jan. 1Cost of purchasesCost of goods available for saleLess: Ending inventory, Dec. 31Cost of goods soldGross profitOperating expensesIncome before taxesIncome taxes expenseNet income

The gross profit is calculated as difference between sales and cost of good sold. Income before tax…

QP Corp. sold 5,450 units of Its product at $45.50 per unit during the year and incurred operating expenses of $6.50 pe unit in selling the units. It began the year with 650 units in inventory and made successive purchases of Its product as follows. 1 Beginning inventory 650 units e s18.50 per unit 1,550 units e s19.50 per unit 750 units e s20.50 per unit 450 units e $21.50 per unit 3,350 units e s22.50 per unit Jan. Feb. 20 Purchase 16 Purchase Мay oct. 3 Purchase 11 Purchase Dec. Total 6,750 units Required: 1. Prepare comparative income statements for the three inventory costing methods of FIFO, LIFO, and weighted average which Includes a detalled cost of goods sold section as part of each statement. The company uses a periodic Inventory system, and Its income tax rate Is 40%. (Round your average cost per unit to 2 decimal places and round your final answers to nearest whole dollar amount.)

QP Corp. sold 5,450 units of Its product at $45.50 per unit during the year and incurred operating expenses of $6.50 pe unit in selling the units. It began the year with 650 units in inventory and made successive purchases of Its product as follows. 1 Beginning inventory 650 units e s18.50 per unit 1,550 units e s19.50 per unit 750 units e s20.50 per unit 450 units e $21.50 per unit 3,350 units e s22.50 per unit Jan. Feb. 20 Purchase 16 Purchase Мay oct. 3 Purchase 11 Purchase Dec. Total 6,750 units Required: 1. Prepare comparative income statements for the three inventory costing methods of FIFO, LIFO, and weighted average which Includes a detalled cost of goods sold section as part of each statement. The company uses a periodic Inventory system, and Its income tax rate Is 40%. (Round your average cost per unit to 2 decimal places and round your final answers to nearest whole dollar amount.)

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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A company began January with 6,000 units of its principal product. The cost of each unit is $8. Inventory transactions for the month of January are as follows: Date of Purchase Purchases Units Unit Cost* Total Cost January 10 5,000 $ 9 $ 45,000 January 18 6,000 10 60,000 Totals 11,000 $ 105,000 * Includes purchase price and cost of freight. Sales Date of Sale Units January 5 3,000 January 12 2,000 January 20 4,000 Total 9,000 8,000 units were on hand at the end of the month. 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system.
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Case D Tompkins Company reports the following Inventory record for November. Date November 1 November 4 November 7 November 13 November 22 INVENTORY Activity Beginning balance Purchase Sale (@ $53 per unit) Purchase Sale (@ $53 per unit) # of Units 135 320 Cost/Unit $ 18 19 245 525 21 520 Selling, administrative, and depreciation expenses for the month were $15,500. Tompkins's effective tax rate is 40 percent. Required: 1. Calculate the cost of ending Inventory and the cost of goods sold under each of the following methods using periodic Inventory system: 2-a. What is the gross profit percentage under the FIFO method? 2-b. What is net income under the LIFO method? 3. Tompkins applied the lower of cost or market method to value its Inventory for reporting purposes at the end of the month. Assuming Tompkins used the FIFO method and that Inventory had a market replacement value of $17.70 per unit, what would Tompkins report on the balance sheet for Inventory? Complete this question by…