Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year we

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Periodic Inventory By Three Methods Cost Of Merchandise Sold The Units Of An Item Available For Sale During The Year We 1 (111.77 KiB) Viewed 22 times

Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory. 40 units @ $114 Mar. 10 Purchase 70 units @ $122 Aug. 30 Purchase 30 units @ $130 Purchase 60 units @ $134 Dec. 12 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar. Cost of Merchandise Inventory and Cost of Merchandise Sold Inventory Method Merchandise Inventory a. First-in, first-out (FIFO) $ 11,940 X b. Last-in, first-out (LIFO) 9,520 X c. Weighted average cost 125.2 X Merchandise Sold $ 13,100 X 15,520 X 10,016 X Periodic Inventory by Three Methods The units of an item available for sale during the year were as follows: 9 units @ $25 Jan. 1 Feb. 17 Inventory Purchase Purchase 18 units@ $27 July 21 5 units @ $30 Nov. 23 Purchase 11 units @ $31 There are 9 units of the item in the physical inventory at December 31. The periodic inventory system is used. a. Determine the inventory cost by the first-in, first-out method. 191 X Problem 1 b. Determine the inventory cost by the last-in, first-out method. 200 X Problem 2 c. Determine the inventory cost by the weighted average cost method. Round average unit cost to the nearest cent and final answers to the nearest whole dollar, if required. 27.95 X The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31, are as follows: Number of Units Date Transaction Jan. 1 Inventory Purchase Sale Sale Sale 10 28 30 Feb. 5 10 16 Mar. 5 28 Sale 14 25 30 Required: Purchase Sale Purchase Sales Sale Purchase Sale Cost of merchandise sold, 7.500 $75.00 22,500 $562,500 1,912,500 11,250 150.00 1,687,500 562,500 3,750 150.00 150.00 Gross profit 1.500 Inventory, March 31 Per Unit Total 85.00 54,000 4,725,000 27,000 160.00 4,320,000 25,500 160.00 45,000 89.50 4,027,500 30,000 160.00 4,800,000 7,500 26,250 160.00 87.50 s 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 s 90.00 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. P Merchandise inventory, March 31 Cost of merchandise sold 225,000 4. Compare the gross profit and the March 31 inventories, using the following column headings. Enter all amounts as positive numbers. Weighted Average LIFO 4,080,000 675,000 4,200,000 FIFO Problem 3 s