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FIFO  perpetual inventory

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Please use the tables provided FIFO perpetual inventory Instructions Chart of Accounts FIFO General Journal Final Questions Instructions The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows: Date Transaction Number of Units Per Unit Total Jan. 1 Inventory 9,000 $60.00 $540,000 10 Purchase 21,000 70.00 1,470,000 28 Sale 10,250 140.00 1,435,000 30 Sale 5,750 140.00 805,000 Feb. 5 Sale 3,500 140.00 490,000 10 Purchase 39,500 75.00 2,962,500 16 Sale 15,000 150.00 2,250,000 28 Sale 10,000 150.00 1,500,000 Mar. 5 Purchase 25,000 82.00 2,050,000 14 Sale 30,000 150.00 4,500,000 25 Purchase 10,000 88.40 884,000 30 Sale 19,000 150.00 2,850,000 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3 , using the first-in, first-out method. 2. Determine the total sales and the total cost of goods sold for the period. Journalize summary entries for the sales and corresponding cost of goods sold for the period. Assume that all sales were on account and date your journal entry March 31. 3. Determine the gross profit from sales for the period. 4. Determine the ending inventory cost as of March 31. 5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower? CHART OF ACCOUNTS Midnight Supplies General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Office Equipment 192 Accumulated Depreciation-Office Equipment 193 Store Equipment 194 Accumulated Depreciation-Store Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 222 Interest Payable 231 Salaries Payable 241 Sales Tax Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Insurance Expense 534 Office Supplies Expense 535 Rent Expense 536 Repairs Expense 537 Selling Expenses 538 Store Supplies Expense 561 Depreciation Expense-Office Equipment 562 Depreciation Expense-Store Equipment 590 Miscellaneous Expense 710 Interest Expense FIFO 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3 , using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column. Date Purchases Cost of goods Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Jan. 1 10 10 28 28 30 Feb. 5 10 10 16 16 28 Mar. 5 5 14 14 25 25 30 30 31 Balances General Journal 2. Determine the total sales and the total cost of goods sold for the period. Journalize summary entries for the sales and corresponding cost of goods sold for the period. Assume that all sales were on account and date your journal entry March 31. General Journal Instructions PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 Final Questions 3. Determine the gross profit from sales for the period. 4. Determine the ending inventory cost as of March 31. 5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower? Higher Lower eBook Show Me How Question Content Area LIFO perpetual inventory The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows: Date Transaction Number of Units Per Unit Total Jan. 1 Inventory 9,000 $60.00 $540,000 Jan. 10 Purchase 21,000 70.00 1,470,000 Jan. 28 Sale 10,250 140.00 1,435,000 Jan. 30 Sale 5,750 140.00 805,000 Feb. 5 Sale 3,500 140.00 490,000 Feb. 10 Purchase 39,500 75.00 2,962,500 Feb. 16 Sale 15,000 150.00 2,250,000 Feb. 28 Sale 10,000 150.00 1,500,000 Mar. 5 Purchase 25,000 82.00 2,050,000 Mar. 14 Sale 30,000 150.00 4,500,000 Mar. 25 Purchase 10,000 88.40 884,000 Mar. 30 Sale 19,000 150.00 2,850,000 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Round unit cost to two decimal places, if necessary. Date Purchases Quantity Purchases Unit Cost Purchases Total Cost Cost of Goods Sold Quantity Cost of Goods Sold Unit Cost Cost of Goods Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost Jan. 1 fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Jan. 10 fill in the blank 4 $fill in the blank 5 $fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 Jan. 10 fill in the blank 10 fill in the blank 11 fill in the blank 12 Jan. 28 fill in the blank 13 $fill in the blank 14 $fill in the blank 15 fill in the blank 16 fill in the blank 17 fill in the blank 18 Jan. 28 fill in the blank 19 fill in the blank 20 fill in the blank 21 Jan. 30 fill in the blank 22 fill in the blank 23 fill in the blank 24 fill in the blank 25 fill in the blank 26 fill in the blank 27 Jan. 30 fill in the blank 28 fill in the blank 29 fill in the blank 30 Feb. 5 fill in the blank 31 fill in the blank 32 fill in the blank 33 fill in the blank 34 fill in the blank 35 fill in the blank 36 Feb. 5 fill in the blank 37 fill in the blank 38 fill in the blank 39 Feb. 10 fill in the blank 40 fill in the blank 41 fill in the blank 42 fill in the blank 43 fill in the blank 44 fill in the blank 45 Feb. 10 fill in the blank 46 fill in the blank 47 fill in the blank 48 Feb. 10 fill in the blank 49 fill in the blank 50 fill in the blank 51 Feb. 16 fill in the blank 52 fill in the blank 53 fill in the blank 54 fill in the blank 55 fill in the blank 56 fill in the blank 57 Feb. 16 fill in the blank 58 fill in the blank 59 fill in the blank 60 Feb. 16 fill in the blank 61 fill in the blank 62 fill in the blank 63 Feb. 28 fill in the blank 64 fill in the blank 65 fill in the blank 66 fill in the blank 67 fill in the blank 68 fill in the blank 69 Feb. 28 fill in the blank 70 fill in the blank 71 fill in the blank 72 Feb. 28 fill in the blank 73 fill in the blank 74 fill in the blank 75 Mar. 5 fill in the blank 76 fill in the blank 77 fill in the blank 78 fill in the blank 79 fill in the blank 80 fill in the blank 81 Mar. 5 fill in the blank 82 fill in the blank 83 fill in the blank 84 Mar. 5 fill in the blank 85 fill in the blank 86 fill in the blank 87 Mar. 5 fill in the blank 88 fill in the blank 89 fill in the blank 90 Mar. 14 fill in the blank 91 fill in the blank 92 fill in the blank 93 fill in the blank 94 fill in the blank 95 fill in the blank 96 Mar. 14 fill in the blank 97 fill in the blank 98 fill in the blank 99 fill in the blank 100 fill in the blank 101 fill in the blank 102 Mar. 14 fill in the blank 103 fill in the blank 104 fill in the blank 105 Mar. 25 fill in the blank 106 fill in the blank 107 fill in the blank 108 fill in the blank 109 fill in the blank 110 fill in the blank 111 Mar. 25 fill in the blank 112 fill in the blank 113 fill in the blank 114 Mar. 25 fill in the blank 115 fill in the blank 116 fill in the blank 117 Mar. 25 fill in the blank 118 fill in the blank 119 fill in the blank 120 Mar. 30 fill in the blank 121 fill in the blank 122 fill in the blank 123 fill in the blank 124 fill in the blank 125 fill in the blank 126 Mar. 30 fill in the blank 127 fill in the blank 128 fill in the blank 129 fill in the blank 130 fill in the blank 131 fill in the blank 132 Mar. 30 fill in the blank 133 fill in the blank 134 fill in the blank 135 Mar. 31 Balances $fill in the blank 136 $fill in the blank 137 2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period. Line Item Description Amount Total sales $fill in the blank 138 Total cost of goods sold $fill in the blank 139 Gross profit $fill in the blank 140 3. Determine the ending inventory cost as of March 31. fill in the blank 1 of 1$ 1. Periodic inventory by three methods The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows: Date Transaction Number of Units Per Unit Total Jan. 1 Inventory 9,000 $60.00 $540,000 Jan. 10 Purchase 21,000 70.00 1,470,000 Jan. 28 Sale 10,250 140.00 1,435,000 Jan. 30 Sale 5,750 140.00 805,000 Feb. 5 Sale 3,500 140.00 490,000 Feb. 10 Purchase 39,500 75.00 2,962,500 Feb. 16 Sale 15,000 150.00 2,250,000 Feb. 28 Sale 10,000 150.00 1,500,000 Mar. 5 Purchase 25,000 82.00 2,050,000 Mar. 14 Sale 30,000 150.00 4,500,000 Mar. 25 Purchase 10,000 88.40 884,000 Mar. 30 Sale 19,000 150.00 2,850,000 1. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the first-in, first-out method and the periodic inventory system. Inventory, March 31 fill in the blank 1 of 2$ Cost of goods sold fill in the blank 2 of 2$ 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. Inventory, March 31 fill in the blank 1 of 2$ Cost of goods sold fill in the blank 2 of 2$ 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. Inventory, March 31 fill in the blank 1 of 2$ Cost of goods sold fill in the blank 2 of 2$ 4. Compare the gross profit and the March 31 inventories, using the following column headings. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Line Item Description FIFO LIFO Weighted Average Sales $fill in the blank 7 $fill in the blank 8 $fill in the blank 9 Cost of goods sold fill in the blank 10 fill in the blank 11 fill in the blank 12 Gross profit $fill in the blank 13 $fill in the blank 14 $fill in the blank 15 Inventory, March 31 $fill in the blank 16 $fill in the blank 17 $fill in the blank 18
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Instructions

Chart of Accounts

FIFO

General Journal

Final Questions

Instructions

The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:

Date Transaction Number of Units Per Unit Total
Jan. 1 Inventory 9,000 $60.00 $540,000
  10 Purchase 21,000 70.00 1,470,000
  28 Sale 10,250 140.00 1,435,000
  30 Sale 5,750 140.00 805,000
Feb. 5 Sale 3,500 140.00 490,000
  10 Purchase 39,500 75.00 2,962,500
  16 Sale 15,000 150.00 2,250,000
  28 Sale 10,000 150.00 1,500,000
Mar. 5 Purchase 25,000 82.00 2,050,000
  14 Sale 30,000 150.00 4,500,000
  25 Purchase 10,000 88.40 884,000
  30 Sale 19,000 150.00 2,850,000
           
  Required:
1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in 

Exhibit 3

, using the first-in, first-out method.

2. Determine the total sales and the total cost of goods sold for the period. Journalize summary entries for the sales and corresponding cost of goods sold for the period. Assume that all sales were on account and date your journal entry March 31.
3. Determine the gross profit from sales for the period.
4. Determine the ending inventory cost as of March 31.
5. Based upon the preceding data, would you expect the ending inventory using the  last-in, first-out method  to be higher or lower?
CHART OF ACCOUNTS
Midnight Supplies
General Ledger
  ASSETS
110 Cash
111 Petty Cash
120 Accounts Receivable
131 Notes Receivable
132 Interest Receivable
141 Inventory
145 Office Supplies
146 Store Supplies
151 Prepaid Insurance
181 Land
191 Office Equipment
192 Accumulated Depreciation-Office Equipment
193 Store Equipment
194 Accumulated Depreciation-Store Equipment

 

  LIABILITIES
210 Accounts Payable
221 Notes Payable
222 Interest Payable
231 Salaries Payable
241 Sales Tax Payable
  EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends

 

 

  REVENUE
410 Sales
610 Interest Revenue
  EXPENSES
510 Cost of Goods Sold
515 Credit Card Expense
516 Cash Short and Over
520 Salaries Expense
531 Advertising Expense
532 Delivery Expense
533 Insurance Expense
534 Office Supplies Expense
535 Rent Expense
536 Repairs Expense
537 Selling Expenses
538 Store Supplies Expense
561 Depreciation Expense-Office Equipment
562 Depreciation Expense-Store Equipment
590 Miscellaneous Expense
710 Interest Expense

 

FIFO

1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in 

Exhibit 3

, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

Date Purchases Cost of goods Sold Inventory
Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost
Jan. 1                  
10                  
10                  
28                  
28                  
30                  
Feb. 5                  
10                  
10                  
16                  
16                  
28                  
Mar. 5                  
5                  
14                  
14                  
25                  
25                  
30                  
30                  
31 Balances                

General Journal

2. Determine the total sales and the total cost of goods sold for the period. Journalize summary entries for the sales and corresponding cost of goods sold for the period. Assume that all sales were on account and date your journal entry March 31.

General Journal Instructions

PAGE 10

JOURNAL

ACCOUNTING EQUATION

  DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY
1                
2                
3                
4                

Final Questions

3. Determine the gross profit from sales for the period.

 

4. Determine the ending inventory cost as of March 31.

 

5. Based upon the preceding data, would you expect the ending inventory using the  last-in, first-out method  to be higher or lower?

Higher

Lower

eBook

Show Me How

Question Content Area

LIFO perpetual inventory

The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:

Date Transaction Number of Units Per Unit Total
Jan. 1 Inventory 9,000 $60.00 $540,000
Jan. 10 Purchase 21,000 70.00 1,470,000
Jan. 28 Sale 10,250 140.00 1,435,000
Jan. 30 Sale 5,750 140.00 805,000
Feb. 5 Sale 3,500 140.00 490,000
Feb. 10 Purchase 39,500 75.00 2,962,500
Feb. 16 Sale 15,000 150.00 2,250,000
Feb. 28 Sale 10,000 150.00 1,500,000
Mar. 5 Purchase 25,000 82.00 2,050,000
Mar. 14 Sale 30,000 150.00 4,500,000
Mar. 25 Purchase 10,000 88.40 884,000
Mar. 30 Sale 19,000 150.00 2,850,000

Required:

1.  Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Round unit cost to two decimal places, if necessary.

 

 

 

 

Date Purchases Quantity Purchases Unit Cost Purchases Total Cost Cost of Goods Sold Quantity Cost of Goods Sold Unit Cost Cost of Goods Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost
Jan. 1             fill in the blank 1 $fill in the blank 2 $fill in the blank 3
Jan. 10 fill in the blank 4 $fill in the blank 5 $fill in the blank 6       fill in the blank 7 fill in the blank 8 fill in the blank 9
Jan. 10             fill in the blank 10 fill in the blank 11 fill in the blank 12
Jan. 28       fill in the blank 13 $fill in the blank 14 $fill in the blank 15 fill in the blank 16 fill in the blank 17 fill in the blank 18
Jan. 28             fill in the blank 19 fill in the blank 20 fill in the blank 21
Jan. 30       fill in the blank 22 fill in the blank 23 fill in the blank 24 fill in the blank 25 fill in the blank 26 fill in the blank 27
Jan. 30             fill in the blank 28 fill in the blank 29 fill in the blank 30
Feb. 5       fill in the blank 31 fill in the blank 32 fill in the blank 33 fill in the blank 34 fill in the blank 35 fill in the blank 36
Feb. 5             fill in the blank 37 fill in the blank 38 fill in the blank 39
Feb. 10 fill in the blank 40 fill in the blank 41 fill in the blank 42       fill in the blank 43 fill in the blank 44 fill in the blank 45
Feb. 10             fill in the blank 46 fill in the blank 47 fill in the blank 48
Feb. 10             fill in the blank 49 fill in the blank 50 fill in the blank 51
Feb. 16       fill in the blank 52 fill in the blank 53 fill in the blank 54 fill in the blank 55 fill in the blank 56 fill in the blank 57
Feb. 16             fill in the blank 58 fill in the blank 59 fill in the blank 60
Feb. 16             fill in the blank 61 fill in the blank 62 fill in the blank 63
Feb. 28       fill in the blank 64 fill in the blank 65 fill in the blank 66 fill in the blank 67 fill in the blank 68 fill in the blank 69
Feb. 28             fill in the blank 70 fill in the blank 71 fill in the blank 72
Feb. 28             fill in the blank 73 fill in the blank 74 fill in the blank 75
Mar. 5 fill in the blank 76 fill in the blank 77 fill in the blank 78       fill in the blank 79 fill in the blank 80 fill in the blank 81
Mar. 5             fill in the blank 82 fill in the blank 83 fill in the blank 84
Mar. 5             fill in the blank 85 fill in the blank 86 fill in the blank 87
Mar. 5             fill in the blank 88 fill in the blank 89 fill in the blank 90
Mar. 14       fill in the blank 91 fill in the blank 92 fill in the blank 93 fill in the blank 94 fill in the blank 95 fill in the blank 96
Mar. 14       fill in the blank 97 fill in the blank 98 fill in the blank 99 fill in the blank 100 fill in the blank 101 fill in the blank 102
Mar. 14             fill in the blank 103 fill in the blank 104 fill in the blank 105
Mar. 25 fill in the blank 106 fill in the blank 107 fill in the blank 108       fill in the blank 109 fill in the blank 110 fill in the blank 111
Mar. 25             fill in the blank 112 fill in the blank 113 fill in the blank 114
Mar. 25             fill in the blank 115 fill in the blank 116 fill in the blank 117
Mar. 25             fill in the blank 118 fill in the blank 119 fill in the blank 120
Mar. 30       fill in the blank 121 fill in the blank 122 fill in the blank 123 fill in the blank 124 fill in the blank 125 fill in the blank 126
Mar. 30       fill in the blank 127 fill in the blank 128 fill in the blank 129 fill in the blank 130 fill in the blank 131 fill in the blank 132
Mar. 30             fill in the blank 133 fill in the blank 134 fill in the blank 135
Mar. 31 Balances         $fill in the blank 136     $fill in the blank 137

2.  Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.

Line Item Description Amount
Total sales $fill in the blank 138
Total cost of goods sold $fill in the blank 139
Gross profit $fill in the blank 140

3.  Determine the ending inventory cost as of March 31. fill in the blank 1 of 1$

 

1. Periodic inventory by three methods

The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:

Date Transaction Number of Units Per Unit Total
Jan. 1 Inventory 9,000 $60.00 $540,000
Jan. 10 Purchase 21,000 70.00 1,470,000
Jan. 28 Sale 10,250 140.00 1,435,000
Jan. 30 Sale 5,750 140.00 805,000
Feb. 5 Sale 3,500 140.00 490,000
Feb. 10 Purchase 39,500 75.00 2,962,500
Feb. 16 Sale 15,000 150.00 2,250,000
Feb. 28 Sale 10,000 150.00 1,500,000
Mar. 5 Purchase 25,000 82.00 2,050,000
Mar. 14 Sale 30,000 150.00 4,500,000
Mar. 25 Purchase 10,000 88.40 884,000
Mar. 30 Sale 19,000 150.00 2,850,000

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. Inventory, March 31 fill in the blank 1 of 2$ Cost of goods sold fill in the blank 2 of 2$

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. Inventory, March 31 fill in the blank 1 of 2$ Cost of goods sold fill in the blank 2 of 2$

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. Inventory, March 31 fill in the blank 1 of 2$ Cost of goods sold fill in the blank 2 of 2$

4. Compare the gross profit and the March 31 inventories, using the following column headings. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Line Item Description FIFO LIFO Weighted Average
Sales $fill in the blank 7 $fill in the blank 8 $fill in the blank 9
Cost of goods sold fill in the blank 10 fill in the blank 11 fill in the blank 12
Gross profit $fill in the blank 13 $fill in the blank 14 $fill in the blank 15
Inventory, March 31 $fill in the blank 16 $fill in the blank 17 $fill in the blank 18

FIFO  perpetual inventory

Instructions

Chart of Accounts

FIFO

General Journal

Final Questions

Instructions

The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:

Date Transaction Number of Units Per Unit Total
Jan. 1 Inventory 9,000 $60.00 $540,000
  10 Purchase 21,000 70.00 1,470,000
  28 Sale 10,250 140.00 1,435,000
  30 Sale 5,750 140.00 805,000
Feb. 5 Sale 3,500 140.00 490,000
  10 Purchase 39,500 75.00 2,962,500
  16 Sale 15,000 150.00 2,250,000
  28 Sale 10,000 150.00 1,500,000
Mar. 5 Purchase 25,000 82.00 2,050,000
  14 Sale 30,000 150.00 4,500,000
  25 Purchase 10,000 88.40 884,000
  30 Sale 19,000 150.00 2,850,000
           
  Required:
1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in 

Exhibit 3

, using the first-in, first-out method.

2. Determine the total sales and the total cost of goods sold for the period. Journalize summary entries for the sales and corresponding cost of goods sold for the period. Assume that all sales were on account and date your journal entry March 31.
3. Determine the gross profit from sales for the period.
4. Determine the ending inventory cost as of March 31.
5. Based upon the preceding data, would you expect the ending inventory using the  last-in, first-out method  to be higher or lower?
CHART OF ACCOUNTS
Midnight Supplies
General Ledger
  ASSETS
110 Cash
111 Petty Cash
120 Accounts Receivable
131 Notes Receivable
132 Interest Receivable
141 Inventory
145 Office Supplies
146 Store Supplies
151 Prepaid Insurance
181 Land
191 Office Equipment
192 Accumulated Depreciation-Office Equipment
193 Store Equipment
194 Accumulated Depreciation-Store Equipment

 

  LIABILITIES
210 Accounts Payable
221 Notes Payable
222 Interest Payable
231 Salaries Payable
241 Sales Tax Payable
  EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends

 

 

  REVENUE
410 Sales
610 Interest Revenue
  EXPENSES
510 Cost of Goods Sold
515 Credit Card Expense
516 Cash Short and Over
520 Salaries Expense
531 Advertising Expense
532 Delivery Expense
533 Insurance Expense
534 Office Supplies Expense
535 Rent Expense
536 Repairs Expense
537 Selling Expenses
538 Store Supplies Expense
561 Depreciation Expense-Office Equipment
562 Depreciation Expense-Store Equipment
590 Miscellaneous Expense
710 Interest Expense

 

FIFO

1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in 

Exhibit 3

, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

Date Purchases Cost of goods Sold Inventory
Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost
Jan. 1                  
10                  
10                  
28                  
28                  
30                  
Feb. 5                  
10                  
10                  
16                  
16                  
28                  
Mar. 5                  
5                  
14                  
14                  
25                  
25                  
30                  
30                  
31 Balances                

General Journal

2. Determine the total sales and the total cost of goods sold for the period. Journalize summary entries for the sales and corresponding cost of goods sold for the period. Assume that all sales were on account and date your journal entry March 31.

General Journal Instructions

PAGE 10

JOURNAL

ACCOUNTING EQUATION

  DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY
1                
2                
3                
4                

Final Questions

3. Determine the gross profit from sales for the period.

 

4. Determine the ending inventory cost as of March 31.

 

5. Based upon the preceding data, would you expect the ending inventory using the  last-in, first-out method  to be higher or lower?

Higher

Lower

eBook

Show Me How

Question Content Area

LIFO perpetual inventory

The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:

Date Transaction Number of Units Per Unit Total
Jan. 1 Inventory 9,000 $60.00 $540,000
Jan. 10 Purchase 21,000 70.00 1,470,000
Jan. 28 Sale 10,250 140.00 1,435,000
Jan. 30 Sale 5,750 140.00 805,000
Feb. 5 Sale 3,500 140.00 490,000
Feb. 10 Purchase 39,500 75.00 2,962,500
Feb. 16 Sale 15,000 150.00 2,250,000
Feb. 28 Sale 10,000 150.00 1,500,000
Mar. 5 Purchase 25,000 82.00 2,050,000
Mar. 14 Sale 30,000 150.00 4,500,000
Mar. 25 Purchase 10,000 88.40 884,000
Mar. 30 Sale 19,000 150.00 2,850,000

Required:

1.  Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Round unit cost to two decimal places, if necessary.

 

 

 

 

Date Purchases Quantity Purchases Unit Cost Purchases Total Cost Cost of Goods Sold Quantity Cost of Goods Sold Unit Cost Cost of Goods Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost
Jan. 1             fill in the blank 1 $fill in the blank 2 $fill in the blank 3
Jan. 10 fill in the blank 4 $fill in the blank 5 $fill in the blank 6       fill in the blank 7 fill in the blank 8 fill in the blank 9
Jan. 10             fill in the blank 10 fill in the blank 11 fill in the blank 12
Jan. 28       fill in the blank 13 $fill in the blank 14 $fill in the blank 15 fill in the blank 16 fill in the blank 17 fill in the blank 18
Jan. 28             fill in the blank 19 fill in the blank 20 fill in the blank 21
Jan. 30       fill in the blank 22 fill in the blank 23 fill in the blank 24 fill in the blank 25 fill in the blank 26 fill in the blank 27
Jan. 30             fill in the blank 28 fill in the blank 29 fill in the blank 30
Feb. 5       fill in the blank 31 fill in the blank 32 fill in the blank 33 fill in the blank 34 fill in the blank 35 fill in the blank 36
Feb. 5             fill in the blank 37 fill in the blank 38 fill in the blank 39
Feb. 10 fill in the blank 40 fill in the blank 41 fill in the blank 42       fill in the blank 43 fill in the blank 44 fill in the blank 45
Feb. 10             fill in the blank 46 fill in the blank 47 fill in the blank 48
Feb. 10             fill in the blank 49 fill in the blank 50 fill in the blank 51
Feb. 16       fill in the blank 52 fill in the blank 53 fill in the blank 54 fill in the blank 55 fill in the blank 56 fill in the blank 57
Feb. 16             fill in the blank 58 fill in the blank 59 fill in the blank 60
Feb. 16             fill in the blank 61 fill in the blank 62 fill in the blank 63
Feb. 28       fill in the blank 64 fill in the blank 65 fill in the blank 66 fill in the blank 67 fill in the blank 68 fill in the blank 69
Feb. 28             fill in the blank 70 fill in the blank 71 fill in the blank 72
Feb. 28             fill in the blank 73 fill in the blank 74 fill in the blank 75
Mar. 5 fill in the blank 76 fill in the blank 77 fill in the blank 78       fill in the blank 79 fill in the blank 80 fill in the blank 81
Mar. 5             fill in the blank 82 fill in the blank 83 fill in the blank 84
Mar. 5             fill in the blank 85 fill in the blank 86 fill in the blank 87
Mar. 5             fill in the blank 88 fill in the blank 89 fill in the blank 90
Mar. 14       fill in the blank 91 fill in the blank 92 fill in the blank 93 fill in the blank 94 fill in the blank 95 fill in the blank 96
Mar. 14       fill in the blank 97 fill in the blank 98 fill in the blank 99 fill in the blank 100 fill in the blank 101 fill in the blank 102
Mar. 14             fill in the blank 103 fill in the blank 104 fill in the blank 105
Mar. 25 fill in the blank 106 fill in the blank 107 fill in the blank 108       fill in the blank 109 fill in the blank 110 fill in the blank 111
Mar. 25             fill in the blank 112 fill in the blank 113 fill in the blank 114
Mar. 25             fill in the blank 115 fill in the blank 116 fill in the blank 117
Mar. 25             fill in the blank 118 fill in the blank 119 fill in the blank 120
Mar. 30       fill in the blank 121 fill in the blank 122 fill in the blank 123 fill in the blank 124 fill in the blank 125 fill in the blank 126
Mar. 30       fill in the blank 127 fill in the blank 128 fill in the blank 129 fill in the blank 130 fill in the blank 131 fill in the blank 132
Mar. 30             fill in the blank 133 fill in the blank 134 fill in the blank 135
Mar. 31 Balances         $fill in the blank 136     $fill in the blank 137

2.  Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.

Line Item Description Amount
Total sales $fill in the blank 138
Total cost of goods sold $fill in the blank 139
Gross profit $fill in the blank 140

3.  Determine the ending inventory cost as of March 31. fill in the blank 1 of 1$

 

1. Periodic inventory by three methods

The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:

Date Transaction Number of Units Per Unit Total
Jan. 1 Inventory 9,000 $60.00 $540,000
Jan. 10 Purchase 21,000 70.00 1,470,000
Jan. 28 Sale 10,250 140.00 1,435,000
Jan. 30 Sale 5,750 140.00 805,000
Feb. 5 Sale 3,500 140.00 490,000
Feb. 10 Purchase 39,500 75.00 2,962,500
Feb. 16 Sale 15,000 150.00 2,250,000
Feb. 28 Sale 10,000 150.00 1,500,000
Mar. 5 Purchase 25,000 82.00 2,050,000
Mar. 14 Sale 30,000 150.00 4,500,000
Mar. 25 Purchase 10,000 88.40 884,000
Mar. 30 Sale 19,000 150.00 2,850,000

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. Inventory, March 31 fill in the blank 1 of 2$ Cost of goods sold fill in the blank 2 of 2$

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. Inventory, March 31 fill in the blank 1 of 2$ Cost of goods sold fill in the blank 2 of 2$

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. Inventory, March 31 fill in the blank 1 of 2$ Cost of goods sold fill in the blank 2 of 2$

4. Compare the gross profit and the March 31 inventories, using the following column headings. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Line Item Description FIFO LIFO Weighted Average
Sales $fill in the blank 7 $fill in the blank 8 $fill in the blank 9
Cost of goods sold fill in the blank 10 fill in the blank 11 fill in the blank 12
Gross profit $fill in the blank 13 $fill in the blank 14 $fill in the blank 15
Inventory, March 31 $fill in the blank 16 $fill in the blank 17 $fill in the blank 18

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