FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

Question

Ashavinbhai 

QP Corporation sold 4,000 units of its product at $50 per unit during the year 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
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.
> Answer is complete but not entirely correct.
QP CORPORATION
Income Statements Comparing FIFO, LIFO, and Weighted Average
For Year Ended December 31
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
700 units @ $18 per unit
1,700 units @ $19 per unit
800 units @ $20 per unit
500 units @ $21 per unit
2,300 units @ $22 per unit
6,000 units
Gross profit
Operating expenses
Net income
$
FIFO
LIFO
$ 200,000 $ 200,000 $ 200,000✔
12,600✔
109,400✔
122,000
0x
122,000
78,000
20,000
58.000
$
12,600✔✓
109,400✔
122,000
0x
Weighted
Average
122,000
78,000
20,000✔
58,000
12,600✔
109,400✔
122,000
0x
122,000
78,000
20,000✔
$ 58,000
expand button
Transcribed Image Text:QP Corporation sold 4,000 units of its product at $50 per unit during the year 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 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. > Answer is complete but not entirely correct. QP CORPORATION Income Statements Comparing FIFO, LIFO, and Weighted Average For Year Ended December 31 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 700 units @ $18 per unit 1,700 units @ $19 per unit 800 units @ $20 per unit 500 units @ $21 per unit 2,300 units @ $22 per unit 6,000 units Gross profit Operating expenses Net income $ FIFO LIFO $ 200,000 $ 200,000 $ 200,000✔ 12,600✔ 109,400✔ 122,000 0x 122,000 78,000 20,000 58.000 $ 12,600✔✓ 109,400✔ 122,000 0x Weighted Average 122,000 78,000 20,000✔ 58,000 12,600✔ 109,400✔ 122,000 0x 122,000 78,000 20,000✔ $ 58,000
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education