Question - Martinez Co. reported the following current-year data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 540 units-180 from each of the last three purchases.
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Jan. 1
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Beginning inventory
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280 units
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@$5.20 = $ 1,456
|
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Mar. 7
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Purchase
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600 units
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@$6.25 = 3,750
|
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July 28
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Purchase
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1,240 units
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@$5.70 = 7,068
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Oct. 3
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Purchase
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1,120 units
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@$6.00 = 6,720
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Dec. 19
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Purchase
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640 units
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@$6.10 = 3,904
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|
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Totals
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3,880 units
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$22,898
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a. Determine the cost assigned to ending inventory and to cost of goods sold for the following.
- Specific identification
- Weighted average
- FIFO
- LIFO
b. Which method yields the highest net income?
- Specific identification
- LIFO
- Weighted average
- FIFO