QP Corporated sold 5,420 units of its product at $45.80 per unit during the year and incurred operating expenses of $6.80 per unit in selling the units. It began the year with 680 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 31 Cost of goods sold 680 units@ $18.80 per unit 1,580 units@ $19.80 per unit 780 units@ $20.80 per unit 480 units@ $21.80 per unit 3,380 units @ $22.80 per unit 6,900 units Gross profit Operating expenses Net income $ 0 0 0 0 $ LIFO 0 0 0 Weighted Average 0 $ 0 0 0 0
QP Corporated sold 5,420 units of its product at $45.80 per unit during the year and incurred operating expenses of $6.80 per unit in selling the units. It began the year with 680 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 31 Cost of goods sold 680 units@ $18.80 per unit 1,580 units@ $19.80 per unit 780 units@ $20.80 per unit 480 units@ $21.80 per unit 3,380 units @ $22.80 per unit 6,900 units Gross profit Operating expenses Net income $ 0 0 0 0 $ LIFO 0 0 0 Weighted Average 0 $ 0 0 0 0
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter5: Accounting For Retail Businesses
Section: Chapter Questions
Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...
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Transcribed Image Text:QP Corporated sold 5,420 units of its product at $45.80 per unit during the year and incurred operating expenses of $6.80 per unit in
selling the units. It began the year with 680 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 31
Cost of goods sold
680 units @ $18.80 per unit.
1,580 units @ $19.80 per unit
780 units @ $20.80 per unit
480 units @ $21.80 per unit
3,380 units@ $22.80 per unit
6,900 units
Gross profit
Operating expenses
Net income
$
0
0
0
0 $
LIFO
0
0
0
Weighted
Average
0 $
0
0
0
0
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