Exercise 5-14 (Algo) Periodic: Cost flow assumptions LO P3 Lopez Company reported the following current-year...
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Accounting
Exercise 5-14 (Algo) 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 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?
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