The beginning inventory for Midnight Supplies and data on purchases and sales fo

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 Per Unit 75.00 85.00 150.00 150.00 150.00 87.50 160.00 160.00 89.50 160.00 90.00 160.00 Total Jan 1 Inventory 10 Purchase 28 Sale 30 Sale 7,500 22,500 11,250 3,750 1,500 54,000 27,000 25,500 45,000 30,000 7,500 26,250 $ 562,500 1,912,500 1,687,500 562,500 225,000 4,725,000 4,320,000 4,080,000 4,027,500 4,800,000 675,000 4,200,000 5 Sale 10 Purchase 16 Sale 28 Sale Feb. Mar 5 Purchase 14 Sale 25 Purchase 30 Sale 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.

Explanation / Answer

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Beg. Balance 7500 75 562500 7500 75 562500 Purchasse 10-Jan 22500 85 1912500 22500 85 1912500 10-Feb 54000 87.5 4725000 54000 87.5 4725000 5-Mar 45000 89.5 4027500 41250 89.5 3691875 3750 89.5 335625 25-Mar 7500 90 675000 7500 90 675000 TOTAL 136500 11902500 125250 10891875 11250 1010625 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Beg. Balance 7500 75 562500 7500 75 562500 Purchasse 10-Jan 22500 85 1912500 18750 85 1593750 3750 85 318750 10-Feb 54000 87.5 4725000 54000 87.5 4725000 5-Mar 45000 89.5 4027500 45000 89.5 4027500 25-Mar 7500 90 675000 7500 90 675000 TOTAL 136500 11902500 125250 11021250 11250 881250 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Beg. Balance 7500 75 562500 Purchasse 10-Jan 22500 85 1912500 10-Feb 54000 87.5 4725000 5-Mar 45000 89.5 4027500 25-Mar 7500 90 675000 TOTAL 136500 87.2 11902500 125250 87.2 10921700 11250 87.2 980800 Total sales 16500 units sold @ 150 2475000 108750 units sold @ 160 17400000 Total sales 19875000 Gross profits: FIFO LIFO Average Sales revenue 19875000 19875000 19875000 Less: Cost of goods sold 10891875 11021250 10921700 Gross Margin 8983125 8853750 8953300

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.