Periodic Inventory by Three Methods

The beginning inventory for RTE Office Supplies and data on purchases and sales for a three-month period are as follows:

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Required: See wrfm12h_ch06_c_pr6_1a.gif

1. Determine the inventory on August 31, 2014, and the cost of goods sold for the three-month period, using the first-in, first-out method and the periodic inventory system.

Merchandise inventory, August 31, 2014	$
Cost of merchandise sold	$

2. Determine the inventory on August 31, 2014, and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system.

Merchandise inventory, August 31, 2014	$
Cost of merchandise sold	$

3. Determine the inventory on August 31, 2014, 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.

Merchandise inventory, August 31, 2014	$
Cost of merchandise sold	$

4. Compare the gross profit and the August 31, 2014, inventories, using the following column headings. Enter all amounts as positive numbers.

Sales	$	$	$
Cost of merchandise sold
Gross profit	$	$	$
Inventory, August 31, 2014	$	$	$