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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1. The first in, first out (FIFO) method of inventory valuation is a cost flow assumption that the first goods purchased are also the first goods sold. When computing CGS, start with the units in beginning inventory.

2. The LIFO method operates under the assumption that the last item of inventory purchased is the first one sold. When computing CGS, start the last units purchased.

3. When using the weighted average method, divide the cost of goods available for sale by the number of units available for sale, which yields the weighted-average cost per unit.

4. When the cost of purchases are increasing, LIFO will produce a higher cost of goods sold, which will result in a lower gross profit.

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