Question
Periodic inventory by three methods The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are
Periodic inventory by three methods
The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:
Date | Transaction | Number of Units | Per Unit | Total |
---|---|---|---|---|
Jan. 1 | Inventory | 9,000 | $60.00 | $540,000 |
Jan. 10 | Purchase | 21,000 | 70.00 | 1,470,000 |
Jan. 28 | Sale | 10,250 | 140.00 | 1,435,000 |
Jan. 30 | Sale | 5,750 | 140.00 | 805,000 |
Feb. 5 | Sale | 3,500 | 140.00 | 490,000 |
Feb. 10 | Purchase | 39,500 | 75.00 | 2,962,500 |
Feb. 16 | Sale | 15,000 | 150.00 | 2,250,000 |
Feb. 28 | Sale | 10,000 | 150.00 | 1,500,000 |
Mar. 5 | Purchase | 25,000 | 82.00 | 2,050,000 |
Mar. 14 | Sale | 30,000 | 150.00 | 4,500,000 |
Mar. 25 | Purchase | 10,000 | 88.40 | 884,000 |
Mar. 30 | Sale | 19,000 | 150.00 | 2,850,000 |
1. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the first-in, first-out method and the periodic inventory system. Inventory, March 31 fill in the blank 1 of 2$ Cost of goods sold fill in the blank 2 of 2$
2. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system. Inventory, March 31 fill in the blank 1 of 2$ Cost of goods sold fill in the blank 2 of 2$
3. Determine the inventory on March 31 and the cost of goods 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 nearest cent. Inventory, March 31 fill in the blank 1 of 2$ Cost of goods sold fill in the blank 2 of 2$
4. Compare the gross profit and the March 31 inventories, using the following column headings. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Line Item Description | FIFO | LIFO | Weighted Average |
---|---|---|---|
Sales | $fill in the blank 7 | $fill in the blank 8 | $fill in the blank 9 |
Cost of goods sold | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 |
Gross profit | $fill in the blank 13 | $fill in the blank 14 | $fill in the blank 15 |
Inventory, March 31 | $fill in the blank 16 | $fill in the blank 17 | $fill in the blank 18 |
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