QP Corporated sold 5,430 units of its product at $45.70 per unit during the year and...

 

 

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QP Corporated sold 5,430 units of its product at $45.70 per unit during the year and incurred operating expenses of $6.70 per unit in selling the units. It began the year with 670 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 670 units @ $18.70 per unit 1,570 units @ $19.70 per unit 770 units @ $20.70 per unit 470 units @ $21.70 per unit 3,370 units @ $22.70 per unit 6,850 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. QP CORPORATION Income Statements Comparing FIFO, LIFO, and Weighted Average For Year Ended December 31 FIFO LIFO Weighted Average Sales Cost of goods sold: Beginning inventory, January 1 Cost of purchases Cost of goods available for sale 0 0 0 Less: Ending inventory, December 31 Cost of goods sold 0 0 0 Gross profit 0 0 0 Operating expenses Net income $ 0 $ 0 $ 0 Activate QP Corporated sold 5,430 units of its product at $45.70 per unit during the year and incurred operating expenses of $6.70 per unit in selling the units. It began the year with 670 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 670 units @ $18.70 per unit 1,570 units @ $19.70 per unit 770 units @ $20.70 per unit 470 units @ $21.70 per unit 3,370 units @ $22.70 per unit 6,850 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. QP CORPORATION Income Statements Comparing FIFO, LIFO, and Weighted Average For Year Ended December 31 FIFO LIFO Weighted Average Sales Cost of goods sold: Beginning inventory, January 1 Cost of purchases Cost of goods available for sale 0 0 0 Less: Ending inventory, December 31 Cost of goods sold 0 0 0 Gross profit 0 0 0 Operating expenses Net income $ 0 $ 0 $ 0 Activate

Answer rating: 100% (QA)

QP Corporation Income Statements Comparing FIFO LIFO and Weighted Average For Year Ended December 31 FIFO Sales 247317 Cost of goods sold Beginning in... View the full answer