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 Number of Units Per Unit Total Jan. 1 Inventory 9,000 $ 60.00 $ 540,000 10 Purchase 21,000 70.00 1,470,000 28 Sale 10,250 140.00 1,435,000 30 Sale 5,750 140.00 805,000 Feb. 5 Sale 3,500 140.00 490,000 10 Purchase 39,500 75.00 2,962,500 16 Sale 15,000 150.00 2,250,000 28 Sale 10,000 150.00 1,500,000 Mar. 5 Purchase 25,000 82.00 2,050,000 14 Sale 30,000 150.00 4,500,000 25 Purchase 10,000 88.40 884,000 30 Sale 19,000 150.00 2,850,000 The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are shown in Problem 6-1A. Instructions 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. 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. 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. Compare the gross profit and the March 31 inventories, using the following column headings: FIFO LIFO Weighted Average Sales Cost of goods sold Gross profit Inventory, March 31

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	Number of Units	Per Unit	Total
Jan. 1	Inventory	9,000	$ 60.00	$ 540,000
10	Purchase	21,000	70.00	1,470,000
28	Sale	10,250	140.00	1,435,000
30	Sale	5,750	140.00	805,000
Feb. 5	Sale	3,500	140.00	490,000
10	Purchase	39,500	75.00	2,962,500
16	Sale	15,000	150.00	2,250,000
28	Sale	10,000	150.00	1,500,000
Mar. 5	Purchase	25,000	82.00	2,050,000
14	Sale	30,000	150.00	4,500,000
25	Purchase	10,000	88.40	884,000
30	Sale	19,000	150.00	2,850,000

The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are shown in Problem 6-1A.

Instructions

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

FIFO LIFO Weighted Average

Sales

Cost of goods sold

Gross profit

Inventory, March 31

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