Question - 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 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 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 methodand 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.