Lopez Company reported the following current-year data for its only product. The company uses a periodic...
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Lopez Company reported the following current-year data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 600 units-200 from each of the last three purchases. January 1, March 7 July 28. October 3 December 19 Beginning inventory Purchase Purchase Purchase Purchase Totals. 300 units@ $6.00 640 units@ $6.25 1,280 units @ $6.50 1,160 units @ $6.80 720 units @ $8.90 4,100 units. $1,800 4,000 8,320 7,888 6,408 $ 28,416 (a-d) Determine the cost assigned to ending inventory and to cost of goods sold for the following. (e) Which method yields the highest net income? Lopez Company reported the following current-year data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 600 units-200 from each of the last three purchases. January 1, March 7 July 28. October 3 December 19 Beginning inventory Purchase Purchase Purchase Purchase Totals. 300 units@ $6.00 640 units@ $6.25 1,280 units @ $6.50 1,160 units @ $6.80 720 units @ $8.90 4,100 units. $1,800 4,000 8,320 7,888 6,408 $ 28,416 (a-d) Determine the cost assigned to ending inventory and to cost of goods sold for the following. (e) Which method yields the highest net income?
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a FIFO FirstIn FirstOut Under the FIFO method the first units purchased are assumed to be the first ones sold Calculate the cost of goods sold COGS us... View the full answer
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