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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 330
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 330 units110 from each of the last three purchases.
January 1 | Beginning inventory | 210 | units | @ $2.40 | = | $ 504 |
---|---|---|---|---|---|---|
March 7 | Purchase | 460 | units | @ $2.75 | = | 1,265 |
July 28 | Purchase | 1,100 | units | @ $2.90 | = | 3,190 |
October 3 | Purchase | 980 | units | @ $3.20 | = | 3,136 |
December 19 | Purchase | 360 | units | @ $3.40 | = | 1,224 |
Totals | 3,110 | units | $ 9,319 |
(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?
Which method yields the highest net income? Which method yields the highest net income? Determine the cost assigned to ending inventory and to cost of goods sold for the following. Note: Do not round intermediate calculations and round your answers to 2 decimal placesStep by Step Solution
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