The beginning inventory at Funky Party Supplies and data on purchases and sales for a three-month period ending March 31, 2016, are as follows:
|
Date |
Transaction |
Number of Units |
Per Unit |
Total |
|
|---|---|---|---|---|---|
| Jan. | 1 | Inventory | 2,500 | $60.00 | $150,000 |
| 10 | Purchase | 7,500 | 68.00 | 510,000 | |
| 28 | Sale | 3,750 | 120.00 | 450,000 | |
| 30 | Sale | 1,250 | 120.00 | 150,000 | |
| Feb. | 5 | Sale | 500 | 120.00 | 60,000 |
| 10 | Purchase | 18,000 | 70.00 | 1,260,000 | |
| 16 | Sale | 9,000 | 125.00 | 1,125,000 | |
| 28 | Sale | 8,500 | 125.00 | 1,062,500 | |
| Mar. | 5 | Purchase | 15,000 | 71.60 | 1,074,000 |
| 14 | Sale | 10,000 | 125.00 | 1,250,000 | |
| 25 | Purchase | 2,500 | 72.00 | 180,000 | |
| 30 | Sale | 8,750 | 125.00 | 1,093,750 | |
| Instructions | |
| 1. | Determine the inventory on March 31, 2016, and the cost of
goods sold for the three-month period, using the first-in,
first-out method
The method of inventory costing based on the assumption that the costs of merchandise sold should be charged against revenue in the order in which the costs were incurred. and the periodic inventory system. |
| 2. | Determine the inventory on March 31, 2016, and the cost of
goods sold for the three-month period, using the last-in, first-out
method
The method of inventory costing based on the assumption that the cost of merchandise sold is the cost of the most recent purchases. and the periodic inventory system. |
| 3. | Determine the inventory on March 31, 2016, and the cost of
goods sold for the three-month period, using the weighted average
cost method
The method of inventory costing in which a weighted average unit cost for each item is computed each time a purchase is made. and the periodic inventory system. Round the weighted average unit cost to the nearest cent. |
| 4. | Compare the gross profit and the March 31, 2016, inventories. |
none
X
FIFO
1. Determine the inventory on March 31, 2016, and the cost of goods sold for the three-month period, using the first-in, first-out method
The method of inventory costing based on the assumption that the costs of merchandise sold should be charged against revenue in the order in which the costs were incurred.
and the periodic inventory system.
| Merchandise inventory, March 31, 2016 | |
| Cost of merchandise sold |
Points:
Feedback
Check My Work
none
X
LIFO
2. Determine the inventory on March 31, 2016, and the cost of goods sold for the three-month period, using the last-in, first-out method
The method of inventory costing based on the assumption that the cost of merchandise sold is the cost of the most recent purchases.
and the periodic inventory system.
| Merchandise inventory, March 31, 2016 | |
| Cost of merchandise sold |
Points:
Feedback
Check My Work
none
X
Weighted Average
3. Determine the inventory on March 31, 2016, and the cost of goods sold for the three-month period, using the weighted average cost method
The method of inventory costing in which a weighted average unit cost for each item is computed each time a purchase is made.
and the periodic inventory system. Round the weighted average unit cost to the nearest cent.
| Merchandise inventory, March 31, 2016 | |
| Cost of merchandise sold |
Points:
Feedback
Check My Work
none
X
Final Question
4. Compare the gross profit and the March 31, 2016, inventories, using the following column headings.
Question not attempted.
|
1 |
FIFO |
LIFO |
Weighted Average |
|
|
2 |
Sales |
|||
|
3 |
Cost of merchandise sold |
|||
|
4 |
Gross profit |
|||
|
5 |
||||
|
6 |
Inventory, March 31, 2016 |
Solution
|
1 |
FIFO |
LIFO |
Weighted Average |
|
|
2 |
Sales |
|||
|
3 |
Cost of merchandise sold |
|||
|
4 |
Gross profit |
|||
|
5 |
||||
|
6 |
Inventory, March 31, 2016 |
Points:
Feedback
Check My Work
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