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 | |
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 and the periodic inventory system.
| Merchandise inventory, March 31, 2016 | |
| Cost of merchandise sold |
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 and the periodic inventory system.
| Merchandise inventory, March 31, 2016 | |
| Cost of merchandise sold |
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 and the periodic inventory system. Round the weighted average unit cost to the nearest cent.
| Merchandise inventory, March 31, 2016 | |
| Cost of merchandise sold |
4. Compare the gross profit and the March 31, 2016, inventories, using the following column headings.
| 1 | FIFO | LIFO | Weighted Average | ||
| 2 | Sales | 5,191,250 | 5,191,250 | 5,191,250 | |
| 3 | Cost of Merch Sold | 2,904,500 | 2,939,000 | ||
| 4 | Gross Profit | 2,286,750 | 2,252,250 | ||
| 5 | Inventory, 3-31-16 |
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