Inventory Problem 7-4B

The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows:

Inventory Purchases and Sales

Date	Transaction	Number of Units	Per Unit	Total
Apr. 3	Inventory	40	$ 670	$ 26,800
8	Purchase	120	690	82,800
11	Sale	60	1,120	67,200
30	Sale	50	1,120	56,000
May 8	Purchase	100	700	70,000
10	Sale	80	1,120	89,600
19	Sale	30	1,120	33,600
28	Purchase	120	707	84,840
June 5	Sale	60	1,260	75,600
16	Sale	40	1,260	50,400
21	Purchase	180	712	128,160
28	Sale	190	1,260	239,400

1. Determine the inventory on June 30 and the cost of merchandise sold for the three-month period, using the first-in, first-out method and the periodic inventory system.

2. Determine the inventory on June 30 and the cost of merchandise sold for the three-month period, using the last-in, first-out method and the periodic inventory system.

   Check Figure for LIFO Ending Inventory, June 30 = $33,700

3. Determine the inventory on June 30 and the cost of merchandise sold for the three-month period, using the weighted average cost method and the periodic inventory system. Round the weighted average unit cost to the dollar.

4. Compare the gross profit and June 30 inventories using the following column headings:

5. Inventory Sales and Cost

   	FIFO	LIFO	Weighted Average
   Sales
   Cost of merchandise sold
   Gross profit
   Inventory, June 30

This is due in 12 hours.