Textbook Problem

Periodic inventory by three methods

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

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.)

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

	FIFO	UFO	Weighted Average
Sales
Cost of goods sold
Gross profit
Inventory, March 31