FINANCIAL ACCT.FUND.(LOOSELEAF)
7th Edition
ISBN: 9781260482867
Author: Wild
Publisher: MCG
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Chapter 5, Problem 8PSA
Periodic: Income comparisons and cost flows
QP Corp. sold 4,000 units of its product at $50 per unit during the year and incurred operating expenses of $5 per unit in selling the units. It began the year with 700 units in inventory and made successive purchases of its product as follows.
Required
- Prepare comparative income statements similar to Exhibit 5.8 for the three inventory costing methods of FIFO, LIFO, and weighted average. (Round all amounts to cents.) Include a detailed cost of goods sold section as part of each statement. The company uses a periodic inventory system, and its income tax rate is
-
Check (1) Net income: FIFO, $61,200; LIFO, $57,180; WA, $59,196 - How would the financial results from using the three alternative inventory costing methods change if the company had been experiencing declining costs in its purchases of inventory?
- What advantages and disadvantages are offered by using (a) LIFO and (b) FIFO? Assume the continuing trend of increasing costs.
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QP Corporated sold 5,360 units of its product at $46.40 per unit during the year and incurred operating expenses of $7.40 per unit in
selling the units. It began the year with 740 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 1
Cost of purchases
Cost of goods available for sale
Less: Ending inventory, December
31
QP CORPORATION
Income Statements Comparing FIFO, LIFO, and Weighted Average
For Year Ended December 31…
QP Corporated sold 5,370 units of its product at $46.30 per unit during the year and incurred operating expenses of $7.30 per unit in
selling the units. It began the year with 730 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.
QP CORPORATION
Income Statements Comparing FIFO, LIFO, and Weighted Average
For Year Ended December 31
FIFO
Sales
Cost of goods sold:
Beginning inventory, January 1
Cost of purchases
Cost of goods available for sale
Less: Ending inventory, December…
Chapter 5 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
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Ch. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Prob. 8DQCh. 5 - Prob. 9DQCh. 5 - Prob. 10DQCh. 5 - Prob. 11DQCh. 5 - Prob. 12DQCh. 5 - Prob. 1QSCh. 5 - Prob. 2QSCh. 5 - Prob. 3QSCh. 5 - Prob. 4QSCh. 5 - Prob. 5QSCh. 5 - Prob. 6QSCh. 5 - Prob. 7QSCh. 5 - Prob. 8QSCh. 5 - Prob. 9QSCh. 5 - Prob. 10QSCh. 5 - Prob. 11QSCh. 5 - Prob. 12QSCh. 5 - Prob. 13QSCh. 5 - Prob. 14QSCh. 5 - Prob. 15QSCh. 5 - Prob. 16QSCh. 5 - Prob. 17QSCh. 5 - Prob. 18QSCh. 5 - Prob. 19QSCh. 5 - Prob. 20QSCh. 5 - Prob. 21QSCh. 5 - Prob. 22QSCh. 5 - Prob. 23QSCh. 5 - Prob. 1ECh. 5 - Prob. 2ECh. 5 - Prob. 3ECh. 5 - Prob. 4ECh. 5 - Prob. 5ECh. 5 - Prob. 6ECh. 5 - Prob. 7ECh. 5 - Prob. 8ECh. 5 - Prob. 9ECh. 5 - Prob. 10ECh. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Prob. 13ECh. 5 - Prob. 14ECh. 5 - Prob. 15ECh. 5 - Prob. 16ECh. 5 - Prob. 17ECh. 5 - Prob. 18ECh. 5 - Prob. 19ECh. 5 - Perpetual: Alternative cost flows P1 Warnerwoods...Ch. 5 - Periodic: Alternative cost flows P3 Refer to the...Ch. 5 - Perpetual: Alternative cost flows P1 Montoure...Ch. 5 - Prob. 4PSACh. 5 - Prob. 5PSACh. 5 - Analysis of inventory errors A2 Navajo Company’s...Ch. 5 - Prob. 7PSACh. 5 - Periodic: Income comparisons and cost flows A1P3...Ch. 5 - Prob. 9PSACh. 5 - Prob. 10PSACh. 5 - Prob. 1PSBCh. 5 - Prob. 2PSBCh. 5 - Prob. 3PSBCh. 5 - Prob. 4PSBCh. 5 - Lower of cost or market P2 A physical inventory of...Ch. 5 - Analysis of inventory errors A2 Hallam Company’s...Ch. 5 - Prob. 7PSBCh. 5 - Periodic: Income comparisons and cost flows A1P3...Ch. 5 - Prob. 9PSBCh. 5 - Prob. 10PSBCh. 5 - Prob. 5SPCh. 5 - Prob. 1AACh. 5 - Prob. 2AACh. 5 - Prob. 3AACh. 5 - Prob. 1BTNCh. 5 - Prob. 2BTNCh. 5 - Prob. 3BTNCh. 5 - Prob. 4BTNCh. 5 - Prob. 5BTNCh. 5 - Visit four retail stores with another classmate....
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