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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