Question

Periodic Inventory by Three Methods

The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are as follows:

Date	Transaction	Number of Units		Per Unit		Total
Apr. 3	Inventory	25		$1,200		$30,000
8	Purchase	75		1,240		93,000
11	Sale	40		2,000		80,000
30	Sale	30		2,000		60,000
May 8	Purchase	60		1,260		75,600
10	Sale	50		2,000		100,000
19	Sale	20		2,000		40,000
28	Purchase	80		1,260		100,800
June 5	Sale	40		2,250		90,000
16	Sale	25		2,250		56,250
21	Purchase	35		1,264		44,240
28	Sale	44		2,250		99,000

Required:

1. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the first-in, first-out method and the periodic inventory system. Round the weighted average unit cost to the nearest cent.

Inventory, June 30	$
Cost of goods sold	$

2. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system.

Inventory, June 30	$
Cost of goods sold	$

3. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the weighted average cost method and the periodic inventory system.

Note: Round the weighted average unit cost to the nearest dollar and final answers to the nearest dollar.

Inventory, June 30	$
Cost of goods sold	$

4. Compare the gross profit and June 30 inventories using the following column headings. Enter all amounts as positive numbers.

	FIFO	LIFO	Weighted Average
Sales	$	$	$
Cost of goods sold
Gross profit	$	$	$
Inventory, June 30	$	$	$

Answer 1

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	25	1200	30000	25	1200	30000
Purchasse
8-Apr	75	1240	93000	75	1240	93000
8-May	60	1260	75600	60	1260	75600
28-May	80	1260	100800	80	1260	100800
21-Jun	35	1264	44240	9	1264	11376	26	1264	32864
TOTAL	275		343640	249		310776	26		32864
	Inventory June30		32864
	Cost of Goods sold		310776
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	25	1200	30000				25	1200	30000
Purchasse
8-Apr	75	1240	93000	74	1240	91760	1	1240	1240
8-May	60	1260	75600	60	1260	75600
28-May	80	1260	100800	80	1260	100800
21-Jun	35	1264	44240	35	1264	44240
TOTAL	275		343640	249		312400	26		31240
	Inventory On June30			31240
	Cost of Goods sold			312400
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	25	1200	30000
Purchasse
8-Apr	75	1240	93000
8-May	60	1260	75600
28-May	80	1260	100800
21-Jun	35	1264	44240
TOTAL	275	1249.6	343640	249	1249.6	311150	26	1249.6	32490
	Inventory On June 30			32490
	Cost of Goods sold			311150
			FIFO	LIFO	Average
Sales			525250	525250	525250
Cost of Goods sold			310776	312400	311150
Gross Profit			214474	212850	214100
Inventory on June30			32864	31240	32490