Answered: 1. Determine the inventory on March 31…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 2PB: LIFO perpetual inventory The beginning inventory for Dunne Co. and data on purchases and sales for a...

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Periodic inventory by three methods

The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are shown below:

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

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	$fill in the blank 1
Cost of goods sold	$fill in the blank 2

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	$fill in the blank 3
Cost of goods sold	$fill in the blank 4

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	$fill in the blank 5
Cost of goods sold	$fill in the blank 6

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	Weighted Average
Sales	$fill in the blank 7	$fill in the blank 8	$fill in the blank 9
Cost of goods sold	fill in the blank 10	fill in the blank 11	fill in the blank 12
Gross profit	$fill in the blank 13	$fill in the blank 14	$fill in the blank 15
Inventory, March 31	$fill in the blank 16	$fill in the blank 17	$fill in the blank 18

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