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

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

Instructions

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.

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.

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 and use that amount in subsequent computations.

4.

Compare the gross profit and the March 31 inventories.

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 and use that amount in subsequent computations.

Inventory, March 31
Cost of goods sold

4. Compare the gross profit and the March 31 inventories, using the following column headings.

1		FIFO	LIFO	Weighted Average
2	Sales
3	Cost of goods sold
4	Gross profit
5
6	Inventory, March 31