The beginning inventory at Midnight Supplies and data on purchases and sales for a three- month period ending March 31, are as follows: Number Per Unit of Units 7,500 Transaction Total Date Jan. 1 Inventory $ 75.00 $ 562,500 10 Purchase 22,500 85.00 1,912,500 28 Sale 11,250 150.00 1,687,500 3,750 1,500 30 Sale 150.00 562,500 225,000 Sale Purchase Feb. 5 150.00 10 54,000 87.50 4,725,000 16 Sale 27,000 160.00 4,320,000 28 Sale 25,500 160.00 4,080,000 Mar. 5 Purchase 45,000 89.50 4,027,500 14 Sale 30,000 160.00 4,800,000 25 Purchase 7,500 90.00 675,000 30 Sale 26,250 160.00 4,200,000

The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are shown in Problem 7-1A.  Adjunt Problem 7-1A

Instructions

1. Determine the inventory on March 31 and the cost of merchandise 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 and the cost of merchandise 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 and the cost of merchandise 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.

4.Compare the gross profit and the March 31 inventories, using the following column headings:

                                         FIFO          Lifo               Weighted average

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Sales

Cost of merchandose sold

Gross profit

Inventory, March 31