Lopez Company reported the following current-year data for itsonly product. The company uses a periodic inventory system, and itsending inventory consists of 360 units—120 from each of the lastthree purchases.
| | | | | | | | |
| Jan. | 1 | Beginning inventory | 220 | units | @ $2.80 | = | $ | 616 |
| Mar. | 7 | Purchase | 480 | units | @ $3.25 | = | | 1,560 |
| July | 28 | Purchase | 1,120 | units | @ $3.30 | = | | 3,696 |
| Oct. | 3 | Purchase | 1,000 | units | @ $3.60 | = | | 3,600 |
| Dec. | 19 | Purchase | 400 | units | @ $3.70 | = | | 1,480 |
| | Totals | 3,220 | units | | | $ | 10,952 |
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Determine the cost assigned to ending inventory and to cost ofgoods sold for the following. (Do not round intermediatecalculations and round your answers to 2 decimalplaces.)
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Which method yields the highest net income?
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LIFO
Specific identification
FIFO
Weighted average
