Exercise 5-14A Periodic: Cost flow assumptions LO P3

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 450 units150 from each of the last three purchases.

Jan.	1	Beginning inventory	250	units	@ $4.00	=	$	1,000
Mar.	7	Purchase	540	units	@ $4.75	=		2,565
July	28	Purchase	1,180	units	@ $4.50	=		5,310
Oct.	3	Purchase	1,060	units	@ $5.80	=		6,148
Dec.	19	Purchase	520	units	@ $5.90	=		3,068
		Totals	3,550	units			$	18,091

Determine the cost assigned to ending inventory and to cost of goods sold for the following.(Do not round weighted average per unit costs and round your answers to 2 decimal places.)

Which method yields the highest net income?

Specific identification

FIFO

LIFO

Weighted average

determine the : specific identification weighted average FIFO LIFO