Lopez Company reported the following current-year data for its only product. The company uses a periodic inventory
Question:
Lopez Company reported the following current-year data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 390 units—130 from each of the last three purchases.
Jan. | 1 | Beginning inventory | 230 | units | @ $3.20 | = | $ | 736 |
Mar. | 7 | Purchase | 500 | units | @ $3.75 | = | 1,875 | |
July | 28 | Purchase | 1,140 | units | @ $3.70 | = | 4,218 | |
Oct. | 3 | Purchase | 1,020 | units | @ $4.60 | = | 4,692 | |
Dec. | 19 | Purchase | 440 | units | @ $4.10 | = | 1,804 | |
Totals | 3,330 | units | $ | 13,325 | ||||
Determine the cost assigned to ending inventory and to cost of goods sold for the following. (Do not round intermediate calculations and round your answers to 2 decimal places.)
Which method yields the highest net income?
LIFO
Weighted average
Specific identification
FIFO
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Required information
[The following information applies to the questions displayed below.]
Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March.
Date | Activities | Units Acquired at Cost | Units Sold at Retail | |||||||||||
Mar. | 1 | Beginning inventory | 160 | units | @ $50 per unit | |||||||||
Mar. | 5 | Purchase | 460 | units | @ $55 per unit | |||||||||
Mar. | 9 | Sales | 480 | units | @ $85 per unit | |||||||||
Mar. | 18 | Purchase | 240 | units | @ $60 per unit | |||||||||
Mar. | 25 | Purchase | 320 | units | @ $62 per unit | |||||||||
Mar. | 29 | Sales | 280 | units | @ $95 per unit | |||||||||
Totals | 1,180 | units | 760 | units | ||||||||||
For specific identification, the March 9 sale consisted of 60 units from beginning inventory and 420 units from the March 5 purchase; the March 29 sale consisted of 100 units from the March 18 purchase and 180 units from the March 25 purchase.
Required:
1. Compute cost of goods available for sale and the number of units available for sale.