Question
In: Accounting
QP Corp. sold 5,470 units of its product at $45.30 per unit during the year and...
QP Corp. sold 5,470 units of its product at $45.30 per unit
during the year and incurred operating expenses of $6.30 per unit
in selling the units. It began the year with 630 units in inventory
and made successive purchases of its product as follows.
| Jan. | 1 | Beginning inventory | 630 | units @ $18.30 per unit |
| Feb. | 20 | Purchase | 1,530 | units @ $19.30 per unit |
| May | 16 | Purchase | 730 | units @ $20.30 per unit |
| Oct. | 3 | Purchase | 430 | units @ $21.30 per unit |
| Dec. | 11 | Purchase | 3,330 | units @ $22.30 per unit |
| Total | 6,650 | units | ||
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 30%. (Round your average cost per
unit to 2 decimal places and round your final answers to nearest
whole dollar amount.)
Solutions
ekkarill92 answered 2 years agoRelated Solutions
QP Corp. sold 5,470 units of its product at $45.30 per unit during the year and...
QP Corp. sold 5,470 units of its product at $45.30 per unit
during the year and incurred operating expenses of $6.30 per unit
in selling the units. It began the year with 630 units in inventory
and made successive purchases of its product as follows.
Jan.
1
Beginning inventory
630
units @ $18.30 per unit
Feb.
20
Purchase
1,530
units @ $19.30 per unit
May
16
Purchase
730
units @ $20.30 per unit
Oct.
3
Purchase
430
units @ $21.30...
QP Corp. sold 5,320 units of its product at $46.80 per unit in year 2016 and...
QP Corp. sold 5,320 units of its product at $46.80 per unit in
year 2016 and incurred operating expenses of $7.80 per unit in
selling the units. It began the year with 780 units in inventory
and made successive purchases of its product as follows.
Jan. 1 Beginning inventory 780 units @ $19.80 per unit
Feb. 20 Purchase 1,680 units @ $20.80 per unit
May 16 Purchase 880 units @ $21.80 per unit
Oct. 3 Purchase 580 units @ $22.80...
This year Cairo Company sold 30,000 units of its only product for $19.00 per unit. Manufacturing...
This year Cairo Company sold 30,000 units of its only product
for $19.00 per unit. Manufacturing and selling the product required
$115,000 of fixed manufacturing costs and $175,000 of fixed selling
and administrative costs. Its per unit variable costs follow.
Material
$
3.50
Direct labor (paid on the basis of completed
units)
2.50
Variable overhead costs
0.35
Variable selling and administrative costs
0.15
Next year the company will use new material, which will reduce
material costs by 60%...
This year Cairo Company sold 29,000 units of its only product for $19.20 per unit. Manufacturing...
This year Cairo Company sold 29,000 units of its only product
for $19.20 per unit. Manufacturing and selling the product required
$114,000 of fixed manufacturing costs and $174,000 of fixed selling
and administrative costs. Its per unit variable costs follow.
Material
$
3.40
Direct labor (paid on the basis of completed
units)
2.40
Variable overhead costs
0.34
Variable selling and administrative costs
0.14
Next year the company will use new material, which will reduce
material costs by 70%...
This year Cairo Company sold 29,000 units of its only product for $19.20 per unit. Manufacturing...
This year Cairo Company sold 29,000 units of its only product
for $19.20 per unit. Manufacturing and selling the product required
$114,000 of fixed manufacturing costs and $174,000 of fixed selling
and administrative costs. Its per unit variable costs follow.
Material
$
3.40
Direct labor (paid on the basis of completed
units)
2.40
Variable overhead costs
0.34
Variable selling and administrative costs
0.14
Next year the company will use new material, which will reduce
material costs by 70%...
This year Cairo Company sold 29,000 units of its only product for $19.20 per unit. Manufacturing...
This year Cairo Company sold 29,000 units of its only product
for $19.20 per unit. Manufacturing and selling the product required
$114,000 of fixed manufacturing costs and $174,000 of fixed selling
and administrative costs. Its per unit variable costs follow.
Material
$
3.40
Direct labor (paid on the basis of completed
units)
2.40
Variable overhead costs
0.34
Variable selling and administrative costs
0.14
Next year the company will use new material, which will reduce
material costs by 70%...
This year Cairo Company sold 43,000 units of its only product for $17.60 per unit. Manufacturing...
This year Cairo Company sold 43,000 units of its only product
for $17.60 per unit. Manufacturing and selling the product required
$128,000 of fixed manufacturing costs and $188,000 of fixed selling
and administrative costs. Its per unit variable costs follow.
Material
$
4.80
Direct labor (paid
on the basis of completed units)
3.80
Variable overhead
costs
0.48
Variable selling and
administrative costs
0.28
Next year the company will use new material, which will reduce
material costs by 50%...
This year Burchard Company sold 40,000 units of its only product for $17.00 per unit. Manufacturing...
This year Burchard Company sold 40,000 units of its only product
for $17.00 per unit. Manufacturing and selling the product required
$125,000 of fixed manufacturing costs and $185,000 of fixed selling
and administrative costs. Its per unit variable costs follow.
Material $ 4.50 Direct labor (paid on the basis of completed units)
3.50 Variable overhead costs 0.45 Variable selling and
administrative costs 0.25 Next year the company will use new
material, which will reduce material costs by 50% and direct...
This year Burchard Company sold 40,000 units of its only product for $17.00 per unit. Manufacturing...
This year Burchard Company sold 40,000 units of its only product
for $17.00 per unit. Manufacturing and selling the product required
$125,000 of fixed manufacturing costs and $185,000 of fixed selling
and administrative costs. Its per unit variable costs follow.
Material $ 4.50 Direct labor (paid on the basis of completed units)
3.50 Variable overhead costs 0.45 Variable selling and
administrative costs 0.25 Next year the company will use new
material, which will reduce material costs by 50% and direct...
This year Burchard Company sold 27,000 units of its only product for $19.60 per unit. Manufacturing...
This year Burchard Company sold 27,000 units of its only product
for $19.60 per unit. Manufacturing and selling the product required
$112,000 of fixed manufacturing costs and $172,000 of fixed selling
and administrative costs. Its per unit variable costs follow.
Material $ 3.20 Direct labor (paid on the basis of completed units)
2.20 Variable overhead costs 0.32 Variable selling and
administrative costs 0.12 Next year the company will use new
material, which will reduce material costs by 60% and direct...
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