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 Date Transaction of Units Per Unit Total 9,000 $60.00 $540,000 21,000 70.00 1,470,000 10,250 140.00 1,435,000 5,750 140.00 805,000 3,500 140.00 490,000 39,500 75.00 2,962,500 15,000 150.00 2,250,000 10,000 150.00 1,500,000 25,000 82.00 2,050,000 30,000 150.00 4,500,000 10,000 88.40 884,000 19,000 150.00 2,850,000 Jan. 1 Inventory Jan. 10 Purchase Jan. 28 Sale Jan. 30 Sale Feb. 5 Sale Feb. 10 Purchase Feb. 16 Sale Feb. 28 Sale Mar. 5 Purchase Mar. 14 Sale Mar. 25 Purchase 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 $ 966,000 ✓ Cost of goods sold $ 6,940,500 ✓ 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 $ 680,000 ✓ Cost of goods sold $ 7,226,500 ✓ 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 $ 832,263 X Cost of goods sold $ 7,074,237 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. Weighted Average $13,830,000 ✓ Sales FIFO 13,830,000 6,940,500 $6,889,500 LIFO $13,830,000 X 7,226,500 X $6,603,500$ Cost of goods sold 7,074,237 X Gross profit 6,755,763 X Inventory, March 31 $ 966,000 $ 680,000 $ 832,263 X $
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 Date Transaction of Units Per Unit Total 9,000 $60.00 $540,000 21,000 70.00 1,470,000 10,250 140.00 1,435,000 5,750 140.00 805,000 3,500 140.00 490,000 39,500 75.00 2,962,500 15,000 150.00 2,250,000 10,000 150.00 1,500,000 25,000 82.00 2,050,000 30,000 150.00 4,500,000 10,000 88.40 884,000 19,000 150.00 2,850,000 Jan. 1 Inventory Jan. 10 Purchase Jan. 28 Sale Jan. 30 Sale Feb. 5 Sale Feb. 10 Purchase Feb. 16 Sale Feb. 28 Sale Mar. 5 Purchase Mar. 14 Sale Mar. 25 Purchase 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 $ 966,000 ✓ Cost of goods sold $ 6,940,500 ✓ 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 $ 680,000 ✓ Cost of goods sold $ 7,226,500 ✓ 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 $ 832,263 X Cost of goods sold $ 7,074,237 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. Weighted Average $13,830,000 ✓ Sales FIFO 13,830,000 6,940,500 $6,889,500 LIFO $13,830,000 X 7,226,500 X $6,603,500$ Cost of goods sold 7,074,237 X Gross profit 6,755,763 X Inventory, March 31 $ 966,000 $ 680,000 $ 832,263 X $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
Date Transaction of Units Per Unit Total
Jan. 1 Inventory
Jan. 10 Purchase
Jan. 28 Sale
Jan. 30 Sale
Feb. 5 Sale
Feb. 10 Purchase
Feb. 16 Sale
Feb. 28 Sale
Mar. 5 Purchase
Mar. 14 Sale
Mar. 25 Purchase
Mar. 30 Sale
9,000 $60.00 $540,000
21,000
70.00 1,470,000
10,250
140.00 1,435,000
5,750 140.00 805,000
3,500 140.00 490,000
39,500
75.00 2,962,500
15,000
150.00 2,250,000
10,000 150.00 1,500,000
25,000
82.00 2,050,000
30,000
150.00 4,500,000
10,000 88.40 884,000
19,000 150.00 2,850,000
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 $ 966,000 ✓
Cost of goods sold $ 6,940,500
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 $
680,000
Cost of goods sold $ 7,226,500
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 $ 832,263 X
Cost of goods sold $ 7,074,237 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
Sales
Weighted Average
$ 13,830,000 $13,830,000 $13,830,000 ✔
6,940,500 x 7,226,500 x 7,074,237 X
6,755,763 X
Cost of goods sold
Gross profit
$6,889,500
$6,603,500$
Inventory, March 31 $ 966,000 ✓
680,000 $ 832,263 X
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