Question
Periodic inventory by three methods The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are shown below: Date
Periodic inventory by three methods
The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are shown below:
Date | Transaction | Number of Units | Per Unit | Total | ||
Jan. 1 | Inventory | 7,500 | $75.00 | $562,500 | ||
10 | Purchase | 22,500 | 85.00 | 1,912,500 | ||
28 | Sale | 11,250 | 150.00 | 1,687,500 | ||
30 | Sale | 3,750 | 150.00 | 562,500 | ||
Feb. 5 | Sale | 1,500 | 150.00 | 225,000 | ||
10 | Purchase | 54,000 | 87.50 | 4,725,000 | ||
16 | Sale | 27,000 | 160.00 | 4,320,000 | ||
28 | Sale | 25,500 | 160.00 | 4,080,000 | ||
Mar. 5 | Purchase | 45,000 | 89.50 | 4,027,500 | ||
14 | Sale | 30,000 | 160.00 | 4,800,000 | ||
25 | Purchase | 7,500 | 90.00 | 675,000 | ||
30 | Sale | 26,250 | 160.00 | 4,200,000 |
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 | $ |
Cost of goods sold | $ |
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 | $ |
Cost of goods sold | $ |
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 | $ |
Cost of goods sold | $ |
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.
FIFO | LIFO | Weighted Average | |
Sales | $ | $ | $ |
Cost of goods sold | |||
Gross profit | $ | $ | $ |
Inventory, March 31 | $ | $ | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started