Date Transaction Number of Units Per Unit Total

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Jan. 1 Inventory 2,600 $58.00 $150,800

10 Purchase 7,200 66.00 475,200

28 Sale 3,950 116.00 458,200

30 Sale 1,300 116.00 150,800

Feb. 5 Sale 500 116.00 58,000

10 Purchase 17,500 68.00 1,190,000

16 Sale 9,200 121.00 1,113,200

28 Sale 8,000 121.00 968,000

Mar. 5 Purchase 14,400 69.60 1,002,240

14 Sale 10,100 121.00 1,222,100

25 Purchase 3,300 70.00 231,000

30 Sale 7,900 121.00 955,900

Instructions

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record, using the first-in, first-out method.

2. Determine the total sales and the total cost of merchandise sold for the period. Journalize the entries in the sales and cost of merchandise sold accounts. 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, 2016.

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