This is the problem I was Assigned: QP Corp. sold 6,500 units of its product at $50 per unit in year 2010 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.

January 1	Beginning inventory	700 units @ $18 per unit
February 20	Purchase	1,600 units @ $19 per unit
May 16	Purchase	800 units @ $20 per unit
October 3	Purchase	500 units @ $21 per unit
December 11	Purchase	3,500 units @ $22 per unit

ASSIGNMENT: 1. Prepare comparative income statements for the three inventory costing methods of , LIFO, and weighted average. 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 30%. (Round per unit costs to three decimals, but inventory balances to the dollar.) 2. How would the financial results from using the three alternative inventory costing methods change if QP had been experiencing declining costs in its purchases of inventory? 3. What advantages and disadvantages are offered by using (a) LIFO and (b) FIFO? Assume the continuing of increasing costs.

IN A SPREADSHEET I NEED TO INCLUDE an income statement comparingFIFO, LIFO, Weighted Average:

These are my results but they do not add up!!

	FIFO	LIFO	Weighted Average
Sales	325,000	325,000	325,000
Inventory December 31, 2009	12,600	12,600	12,600
Cost of purchases	133,900	133,900	133,900
Cost of goods available for sale	146,500	146,500	146,500
Inventory December 31, 2010	79,100	59,000	52,800
Cost of goods sold	67,400	87,500	97,700
Gross profit	257,600	237,500	231,300
Expenses	32,500	32,500	32,500
Income before Taxes	225,100	205,000	198,800
Income Tax Expense	67,530	61,500	59,640
Net Income	111,440	109,760	110,866

Supporting Calculations: