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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. 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 Answer is complete but not entirely correct. QP CORPORATION Income Statements Comparing FIFO, LIFO, and Weighted Average For Year Ended December 31 FIFO LIFO Weighted Average $ 200,000 $ 200,000 $ 200,000 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 Gross profit Operating expenses Net income 12,600 109,400 122,000 0X 122,000 78,000 20,000 $ 58,000 S 12,600 109,400 122,000 0 122,000 78,000 20,000 58,000 $ 12,600 109,400 122,000 0x 122,000 78,000 20,000 58,000

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. 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 Answer is complete but not entirely correct. QP CORPORATION Income Statements Comparing FIFO, LIFO, and Weighted Average For Year Ended December 31 FIFO LIFO Weighted Average $ 200,000 $ 200,000 $ 200,000 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 Gross profit Operating expenses Net income 12,600 109,400 122,000 0X 122,000 78,000 20,000 $ 58,000 S 12,600 109,400 122,000 0 122,000 78,000 20,000 58,000 $ 12,600 109,400 122,000 0x 122,000 78,000 20,000 58,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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
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