Bay Corp. sold 6,500 units of its product at $50 per unit in year 2009 and incurred operating expenses of $5 per unit in selling the units. It began the year with 900 units in inventory and made successive purchases of its product as follows:
Jan. 1 Beginning Inventory 900 units @ $21 per unit
Feb. 20 Purchase 1950 units @ $22 per unit
May 16 Purchase 1050 units @$25 per unit
Oct. 3 Purchase 700 units @ $ 26 per unit
Dec. 11 Purchase 2750 units @ $27 per unit
Prepare comparative income statements for the three costing method of FIFO, LIFO, and weighted average. Include a detailed cost of goods sold section as part of each statement. The Company uses a periodic inventory system and income tax rate is 40%

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I reposted my question showing what I did

Quote:

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Originally Posted by Rose100

I reposted my question showing what I did

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Bay Corp. sold 6,500 units of its product at $50 per unit in year 2009 and incurred operating expenses of $5 per unit in selling the units. It began the year with 900 units in inventory and made successive purchases of its product as follows:
Jan. 1 Beginning Inventory 900 units @ $21 per unit
Feb. 20 Purchase 1950 units @ $22 per unit
May 16 Purchase 1050 units @$25 per unit
Oct. 3 Purchase 700 units @ $ 26 per unit
Dec. 11 Purchase 2750 units @ $27 per unit
Prepare comparative income statements for the three costing method of FIFO, LIFO, and weighted average. Include a detailed cost of goods sold section as part of each statement. The Company uses a periodic inventory system and income tax rate is 40%

Where... I didn't see it in this post. After a search I see you created a second thread.

You are supposed to respond to the existing thread (which is this one) which would have been sufficient to satisfy the rules ( we have many people that won't attempt it and just want handed the answer which is WHY there is that rule).. I had to ask a moderator to take the time to combine both threads as a result which will happen soon.

Its posted under How do I find ending inventory because my net income is wrong in the homework section

my third post that I have posted under the homwework section
I calculated all the units: total units is $7350
to find my ending inventory I did
Beginning Inventory + purchases- Cost of goods sold = ending inventory
900 + 6450 - 6500= 850 (but that's in units)
Sales... 325,000 (6500*50)
Beginning Inventory... 18900
Purchass... 161,600
Cost of Goods Available... 180,500
Ending Inventory..

This is where I get stumpped because my answer is not working out to the answer in the text book of 80,970 under the FIFO method