Accounting 27th Edition ISBN 978-1-337-27209-4, PR 7-1A page 384.

OBJ. 2, 3 PR 7-1A FIFO 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: Number Per of Units Unit Total DateTransaction Jan. 1 Inventory 7,500 22,500 75.00 $ 562,500 85.00 1,912,500 10 Purchase 28 Sale 30 Sale 11.250150.00 1687,500 562,500 225,000 54,000 8750 4,725,000 27,000 160.00 4,320,000 25,500 160.00 4,080,000 89.50 4,027,500 30,000 160.00 4,800,000 675,000 26,250160.00 4,200,000 3,750 1,500 150.00 150.00 Feb. 5 Sale 10 Purchase 16 Sale 28 Sale Mar. 5 Purchase 45,000 14 Sale 25 Purchase 30 Sale 7,500 90.00 Instructions 1. Record the inventory, purchases, and cost of merchandise 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 merchandise sold for the period. Jour- nalize the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account. 3. Determine the gross profit from sales for the period