Question

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 390 units—130 from each of the last three purchases.

Jan.	1	Beginning inventory	230	units	@ $3.20	=	$	736
Mar.	7	Purchase	500	units	@ $3.75	=		1,875
July	28	Purchase	1,140	units	@ $3.70	=		4,218
Oct.	3	Purchase	1,020	units	@ $4.60	=		4,692
Dec.	19	Purchase	440	units	@ $4.10	=		1,804
		Totals	3,330	units			$	13,325

  
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?
  

LIFO

Weighted average

Specific identification

FIFO

____________________________________________________

Required information

[The following information applies to the questions displayed below.]

Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March.

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Mar.

1

Beginning inventory

160

units

@ $50 per unit

Mar.

5

Purchase

460

units

@ $55 per unit

Mar.

9

Sales

480

units

@ $85 per unit

Mar.

18

Purchase

240

units

@ $60 per unit

Mar.

25

Purchase

320

units

@ $62 per unit

Mar.

29

Sales

280

units

@ $95 per unit

Totals

1,180

units

760

units

For specific identification, the March 9 sale consisted of 60 units from beginning inventory and 420 units from the March 5 purchase; the March 29 sale consisted of 100 units from the March 18 purchase and 180 units from the March 25 purchase.

Required:
1. Compute cost of goods available for sale and the number of units available for sale.

Answer 1