DATE Transaction Units Cost per unit
Jan 1 Balance 1600 $16
Jan 11 Purchase 2000 $14
Feb 16 Sale 960
Mar 20 Sale 680
June 22 Purchase 580 $15
Aug 18 Sale 950
Sept 10 Sale 810
Oct 8 Purchase 1510 $17
Dec 9 Sale 930
Dec 21 Purchase 400 $18
Determine the Cost of Merchandise Sold and Ending Inventory forboth Periodic and Perpetual Inventory methods for: FIFO, LIFO, andWeighted Average
DATE Transaction Units Cost per unit
Jan 1 Balance 1600 $16
Jan 11 Purchase 2000 $14
Feb 16 Sale 960
Mar 20 Sale 680
June 22 Purchase 580 $15
Aug 18 Sale 950
Sept 10 Sale 810
Oct 8 Purchase 1510 $17
Dec 9 Sale 930
Dec 21 Purchase 400 $18
Determine the Cost of Merchandise Sold and Ending Inventory forboth Periodic and Perpetual Inventory methods for: FIFO, LIFO, andWeighted Average
Related questions
Montoure Companyuses a perpetual inventory system. It entered into the followingcalendar-year 2013 purchases and sales transactions. |
| Date | Activities | Units Acquired at Cost | Units Sold at Retail | ||||||||||||||
| Jan. | 1 | Beginning inventory | 700 | units | @ | $ | 50 | /unit | |||||||||
| Feb. | 10 | Purchase | 300 | units | @ | $ | 46 | /unit | |||||||||
| Mar. | 13 | Purchase | 100 | units | @ | $ | 40 | /unit | |||||||||
| Mar. | 15 | Sales | 780 | units | @ | $ | 70 | /unit | |||||||||
| Aug. | 21 | Purchase | 110 | units | @ | $ | 55 | /unit | |||||||||
| Sept. | 5 | Purchase | 570 | units | @ | $ | 52 | /unit | |||||||||
| Sept. | 10 | Sales | 680 | units | @ | $ | 70 | /unit | |||||||||
| Totals | 1,780 | units | 1,460 | units | |||||||||||||
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1. | Compute cost ofgoods available for sale and the number of units available forsale.
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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 | 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 | ||||
Required:
1. Determine the inventory on March 31 and the cost of merchandise sold for the three-month period, using the first-in, first-out method and the periodic inventory system.
| Merchandise inventory, March 31 | $ |
| Cost of merchandise sold | $ |
2. Determine the inventory on March 31 and the cost of merchandise sold for the three-month period, using the last-in, first-out method and the periodic inventory system.
| Merchandise inventory, March 31 | $ |
| Cost of merchandise sold | $ |
3. Determine the inventory on March 31 and the cost of merchandise 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 final answers to the nearest dollar.
| Merchandise inventory, March 31 | $ |
| Cost of merchandise sold | $ |
4. Compare the gross profit and the March 31 inventories, using the following column headings. Enter all amounts as positive numbers.
| FIFO | LIFO | Weighted Average | |
|---|---|---|---|
| Sales | $ | $ | $ |
| Cost of merchandise sold | |||
| Gross profit | $ | $ | $ |
| Inventory, March 31 | $ | $ | $ |
