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 360 units120 from each of the last three purchases.

Jan.1Beginning inventory220units@ $2.80=$616Mar.7Purchase480units@ $3.25=1,560July28Purchase1,120units@ $3.30=3,696Oct.3Purchase1,000units@ $3.60=3,600Dec.19Purchase400units@ $3.70=1,480Totals3,220units$10,952

Determine the cost assigned to ending inventory and to cost of goods sold for the following.(Do not round intermediate calculations and round your answers to 2 decimal places.)

Which method yields the highest net income?

• Specific identification
• Weighted average
• LIFO
• FIFO