Question

Problem 5-8AA Periodic: Income comparisons and cost flows LO A1, P3 QP Corp. sold 5,430 units of its product at $45.70 per unit during the year and incurred operating expenses of $6.70 per unit in selling the units. It began the year with 670 units in inventory and made successive purchases of its product as follows. 670 units $18.70 per unit 1,570 units $19.70 per unit 770 units e $20.70 per unit 470 units e $21.70 per unit 3,370 units $22.70 per unit Jan. 1 Beginning inventory 20 Purchase Feb. May oct. 16 Purchase 3 Purchase Dec. 11 Purchase 6,850 units Total Required: 1. Prepare comparative income statements for the three inventory costing methods of FIFO, LIFO, and weighted average which includes a detailed cost of goods sold section as part of each statement. The company uses a periodic inventory system, and its income tax rate is 35%. (Round your average cost per unit to 2 decimal places and round your final answers to nearest whole dollar amount.) QP CORP. Income Statements Comparing FIFO, LIFO, and Weighted Average For Year Ended December 31 Weighted Average FIFO LIFO $ 248,151 $248,151 $ 248,151 Sales Cost of goods sold: 12,529 12,529 12,529 Beginning inventory, Jan. 1 allTe NON An &

Answer 1

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- QP CORP. Income Statements comparing Alfo, Lifo and weightage Average 1. for the Year Ended December 31 Fifo I Lifo Tweighted Average sales १५४, 151 १२५8,15। $248,151 Cost of Goods solde Beginning inventory, Jahrs 12,5mg 12,529 12,529 Cost of Puschases 133,566 I 133,566 133,566 Cost of Goods available for sale 146,095 146,095 |146,095 Less: Ending Inventory, Dec.31 3२,२34 27304 30,285 . Cost of Goods sold 113,861 118,7911115,810 - Gross profit 134,290 189,360 138,341 operating expenses 36,381 36,381 Income before Taxes 97,909 92,973 195,960 Income Taxes Expenses @ 35%. 34,868 32,543 339864 Net Income 163,641 60,43662,374