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QP Corporated sold 5,500 units of its product at $45.00 per unit during the year and incurred operating expenses of $6.00 per unit in selling the units. It began the year with 600 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 11 Cost of purchases Cost of goods available for sale 600 units 1,500 units 700 units 400 units 3,300 units 6,500 units QP CORPORATION Income Statements Comparing FIFO, LIFO, and Weighted Average For Year Ended December 31 FIFO Less: Ending inventory, December 31 Cost of goods sold Gross profit Operating expenses Net income $18.00 per unit $19.00 per unit $20.00 per unit $21.00 per unit $22.00 per unit 10,800 123.500 134,300 70,400 63.900 -63,900 LIFO 10,800 123,500 134,300 134,300 -134,300 Weighted Average S -63,900 $-134,300 $ 10,800 123,500 134,300 134,300 -134,300 -134.300

QP Corporated sold 5,500 units of its product at $45.00 per unit during the year and incurred operating expenses of $6.00 per unit in selling the units. It began the year with 600 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 11 Cost of purchases Cost of goods available for sale 600 units 1,500 units 700 units 400 units 3,300 units 6,500 units QP CORPORATION Income Statements Comparing FIFO, LIFO, and Weighted Average For Year Ended December 31 FIFO Less: Ending inventory, December 31 Cost of goods sold Gross profit Operating expenses Net income $18.00 per unit $19.00 per unit $20.00 per unit $21.00 per unit $22.00 per unit 10,800 123.500 134,300 70,400 63.900 -63,900 LIFO 10,800 123,500 134,300 134,300 -134,300 Weighted Average S -63,900 $-134,300 $ 10,800 123,500 134,300 134,300 -134,300 -134.300

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 15E: Habicht Company was formed in 2018 to produce a single product. The production and sales for the...
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QP Corporated sold 5,500 units of its product at $45.00 per unit during the year and incurred operating expenses of $6.00 per unit in selling the units. It began the year with 600 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 600 units 1,500 units 700 units 400 units 3,300 units 6,500 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. 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 QP CORPORATION Income Statements Comparing FIFO, LIFO, and Weighted Average For Year Ended December 31 FIFO Gross profit Operating expenses Net Income $18.00 per unit $19.00 per unit. $20.00 per unit $21.00 per unit. $22.00 per unit LIFO 10.800 10,800 123,500 123,500 134,300 134,300 70,400 63,900 134,300 -63,900 -134,300 Weighted Average $ -63,900 $-134,300 $1 10,800 123,500 134,300 134,300 -134,300 -134.300
Transcribed Image Text:QP Corporated sold 5,500 units of its product at $45.00 per unit during the year and incurred operating expenses of $6.00 per unit in selling the units. It began the year with 600 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 600 units 1,500 units 700 units 400 units 3,300 units 6,500 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. 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 QP CORPORATION Income Statements Comparing FIFO, LIFO, and Weighted Average For Year Ended December 31 FIFO Gross profit Operating expenses Net Income $18.00 per unit $19.00 per unit. $20.00 per unit $21.00 per unit. $22.00 per unit LIFO 10.800 10,800 123,500 123,500 134,300 134,300 70,400 63,900 134,300 -63,900 -134,300 Weighted Average $ -63,900 $-134,300 $1 10,800 123,500 134,300 134,300 -134,300 -134.300
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