Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions