Question
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
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 |
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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 |
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3 | Cost of goods sold |
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4 | Gross profit |
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5 |
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6 | Inventory, March 31 |
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