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: Number of Units Date Transaction Per Unit Total Jan. 1 Inventory 7,500 $75.00 $562,500 3,750 10 Purchase 22,500 85.00 1,912,500 28 Sale 11,250 150.00 1,687,500 30 Sale 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 $ 1,010,625 Cost of goods sold 10,891,875 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 31 881,250 Cost of nonds sold $ 11.021.250 we TVETTY IN the cost or goods SC TOT Jender Ung the last, stout med and te perdreven System Inventory, March 31 $ 881,250 Cost of goods sold 11,021,250 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 31 981,000 Cost of goods sold $ 11,902,500 x 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 19,875,000 19,875,000 $ 19,875,000 Cost of goods sold 10,891,875 X 11,021,250 X 10,921,525 X Gross profit 8,983,125 $ 8,853,750 $ 8,953,475 X Inventory, March 31 $ 1,010,625 $ 881,250 $ 981,000 Feedback Check My Work 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, stat 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