QP Corporated sold 5,500 units of its product at $45.00 per unit during the year and incurred operating expenses of $6.00 per unit in selling the units. It began the year with 600 units in inventory and made successive purchases of its product as follows. January 1 February 20 May 16 October 3 December 11 Beginning inventory Purchase Purchase Purchase Purchase Total Required: 1. Prepare comparative year-end income statements for the three inventory costing methods of FIFO, LIFO, and weighted average which includes a detailed cost of goods sold section as part of each statement. The company uses a periodic inventory system. Note: Round your average cost per unit to 2 decimal places and round your final answers to nearest whole dollar amount. Sales Cost of goods sold Beginning inventory, January 11 Cost of purchases Cost of goods available for sale 600 units 1,500 units 700 units 400 units 3,300 units 6,500 units QP CORPORATION Income Statements Comparing FIFO, LIFO, and Weighted Average For Year Ended December 31 FIFO Less: Ending inventory, December 31 Cost of goods sold Gross profit Operating expenses Net income $18.00 per unit $19.00 per unit $20.00 per unit $21.00 per unit $22.00 per unit 10,800 123.500 134,300 70,400 63.900 -63,900 LIFO 10,800 123,500 134,300 134,300 -134,300 Weighted Average S -63,900 $-134,300 $ 10,800 123,500 134,300 134,300 -134,300 -134.300
QP Corporated sold 5,500 units of its product at $45.00 per unit during the year and incurred operating expenses of $6.00 per unit in selling the units. It began the year with 600 units in inventory and made successive purchases of its product as follows. January 1 February 20 May 16 October 3 December 11 Beginning inventory Purchase Purchase Purchase Purchase Total Required: 1. Prepare comparative year-end income statements for the three inventory costing methods of FIFO, LIFO, and weighted average which includes a detailed cost of goods sold section as part of each statement. The company uses a periodic inventory system. Note: Round your average cost per unit to 2 decimal places and round your final answers to nearest whole dollar amount. Sales Cost of goods sold Beginning inventory, January 11 Cost of purchases Cost of goods available for sale 600 units 1,500 units 700 units 400 units 3,300 units 6,500 units QP CORPORATION Income Statements Comparing FIFO, LIFO, and Weighted Average For Year Ended December 31 FIFO Less: Ending inventory, December 31 Cost of goods sold Gross profit Operating expenses Net income $18.00 per unit $19.00 per unit $20.00 per unit $21.00 per unit $22.00 per unit 10,800 123.500 134,300 70,400 63.900 -63,900 LIFO 10,800 123,500 134,300 134,300 -134,300 Weighted Average S -63,900 $-134,300 $ 10,800 123,500 134,300 134,300 -134,300 -134.300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:QP Corporated sold 5,500 units of its product at $45.00 per unit during the year and incurred operating expenses of $6.00 per unit in
selling the units. It began the year with 600 units in inventory and made successive purchases of its product as follows.
January 1
February 20
May 16
October 3
December 11
Beginning inventory
Purchase
Purchase
Purchase
Purchase
Total
600 units
1,500 units
700 units
400 units
3,300 units
6,500 units
Required:
1. Prepare comparative year-end income statements for the three inventory costing methods of FIFO, LIFO, and weighted average
which includes a detailed cost of goods sold section as part of each statement. The company uses a periodic inventory system.
Note: Round your average cost per unit to 2 decimal places and round your final answers to nearest whole dollar amount.
Sales
Cost of goods sold
Beginning inventory, January 1
Cost of purchases
Cost of goods available for sale
Less: Ending inventory, December 31
Cost of goods sold
QP CORPORATION
Income Statements Comparing FIFO, LIFO, and Weighted Average
For Year Ended December 31
FIFO
Gross profit
Operating expenses
Net Income
$18.00 per unit
$19.00 per unit.
$20.00 per unit
$21.00 per unit.
$22.00 per unit
LIFO
10.800
10,800
123,500 123,500
134,300
134,300
70,400
63,900
134,300
-63,900 -134,300
Weighted
Average
$ -63,900 $-134,300 $1
10,800
123,500
134,300
134,300
-134,300
-134.300
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