Periodic inventory by three methods The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows: Date Transaction Jan. 1 Inventory Jan. 10 Purchase Jan. 28 Sale Jan. 30 Sale Feb. 5 Sale Feb. 10 Purchase Number of Units Per Unit Total 9,000 21,000 10,250 $60.00 $540,000 70.00 1,470,000 140.00 1,435,000 5,750 140.00 805,000 490,000 3,500 140.00 39,500 75.00 2,962,500 Feb. 16 Sale 15,000 150.00 2,250,000 Feb. 28 Sale 10,000 150.00 1,500,000 82.00 2,050,000 Mar. 5 Purchase 25,000 Mar. 14 Sale Mar. 25 Purchase 30,000 150.00 4,500,000 10,000 88.40 884,000 19,000 150.00 2,850,000 Mar. 30 Sale 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 s 11,000 X 6,934,100 X 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 s Cost of goods sold $ Inventory, March 31 s Cost of goods sold s 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.
Periodic inventory by three methods The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows: Date Transaction Jan. 1 Inventory Jan. 10 Purchase Jan. 28 Sale Jan. 30 Sale Feb. 5 Sale Feb. 10 Purchase Number of Units Per Unit Total 9,000 21,000 10,250 $60.00 $540,000 70.00 1,470,000 140.00 1,435,000 5,750 140.00 805,000 490,000 3,500 140.00 39,500 75.00 2,962,500 Feb. 16 Sale 15,000 150.00 2,250,000 Feb. 28 Sale 10,000 150.00 1,500,000 82.00 2,050,000 Mar. 5 Purchase 25,000 Mar. 14 Sale Mar. 25 Purchase 30,000 150.00 4,500,000 10,000 88.40 884,000 19,000 150.00 2,850,000 Mar. 30 Sale 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 s 11,000 X 6,934,100 X 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 s Cost of goods sold $ Inventory, March 31 s Cost of goods sold s 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Periodic inventory by three methods
The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:
Number
of Units Per Unit Total
Date Transaction
Jan. 1 Inventory
Jan. 10 Purchase
Jan. 28 Sale
9,000
21,000
10,250
Jan. 30 Sale
5,750 140.00
805,000
Feb. 5 Sale
140.00
490,000
3,500
39,500
Feb. 10 Purchase
75.00 2,962,500
Feb. 16 Sale
15,000
150.00 2,250,000
Feb. 28 Sale
10,000
150.00 1,500,000
Mar. 5 Purchase.
25,000
82.00 2,050,000
Mar. 14 Sale
30,000
Mar. 25 Purchase
150.00 4,500,000
10,000 88.40 884,000
19,000 150.00 2,850,000
Mar. 30 Sale
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.
11,000 X
6,934,100 X
Inventory, March 31 $
Cost of goods sold $
$60.00
$540,000
70.00 1,470,000
140.00 1,435,000
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.
Sales
Cost of goods sold
Gross profit
Inventory, March 31
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
FIFO
Weighted Average
$
$
$
$
LIFO
$
$
minus sign.
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