Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 40 units @ $114 Mar. 10 Aug. 30 Purchase 70 units @ $122 Purchase 30 units @ $130 Dec. 12 Purchase 60 units @ $134 Problem 1 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar. Cost of Merchandise Inventory and Cost of Merchandise Sold Inventory Method Merchandise Inventory Merchandise Sold a. First-in, first-out (FIFO) 11,940 X 13,100 X b. Last-in, first-out (LIFO) 9,520 X 15,520 X c. Weighted average cost 125.2 x 10,016 X Periodic Inventory by Three Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 9 units @ $25 Feb. 17 Purchase 18 units @ $27 July 21 Purchase 5 units @ $30 11 units @ $31 Nov. 23 Purchase There are 9 units of the item in the physical inventory at December 31. The periodic inventory system is used. a. Determine the inventory cost by the first-in, first-out method. 191 X b. Determine the inventory cost by the last-in, first-out method. Problem 2 The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31, are as follows: Number Date Transaction of Units Per Unit Total Jan. 1 Inventory 7,500 $75.00 $562,500 10 Purchase 22,500 85.00 Sale 11,250 150.00 1,912,500 1,687,500 30 Sale 3,750 150.00 562,500 Feb. 5 Sale 1,500 150.00 225,000 10 Purchase 54,000 16 Sale 87.50 4,725,000 27,000 160.00 4,320,000 28 Sale 25,500 160.00 Mar. 5 Purchase 45,000 14 Sale Purchase 30,000 160.00 7,500 90.00 30 Sale 26,250 160.00 4,080,000 89.50 4,027,500 4,800,000 675,000 4,200,000 Problem 3 Required: 1. Determine the inventory on March 31 and the cost of merchandise sold for the three-month period, using the first-in, first-out method and the periodic inventory system. Merchandise inventory, March 31 Cost of merchandise sold 2. Determine the inventory on March 31 and the cost of merchandise sold for the three-month period, using the last-in, first-out method and the periodic inventory system. Merchandise inventory, March 31 Cost of merchandise sold 100:00:000 3. Determine the inventory on March 31 and the cost of merchandise sold for the three-month period, using the weighted average cost method and the periodic inventory system. Merchandise inventory, March 31 Cost of merchandise sold 4. Compare the gross profit and the March 31 inventories, using the following column headings. Enter all amounts as positive numbers. Weighted Average FIFO LIFO 200 X c. Determine the inventory cost by the weighted average cost method. Round average unit cost to the nearest cent and final answers to the nearest whole dollar, if required. 27.95 X Sales Cost of merchandise sold Gross profit Inventory, March 31