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

2. determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account and date your journal entry March 31. Refer to the chart of accounts for exact wording of account titles.

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 2,600 $58.00 $150,800 Purchase 7,200 86.00 475,200 Sale 3,950 118.00 458,200 30 Sale 1,300 116.00 150.800 Feb. 5 Sale 500 118.00 58,000 Purchase 17,500 88.00 1,190,000 Sale 9,200 121.00 1.113,200 28 Sale 8.000 121.00 988,000 Mar. 5 Purchase 14.400 69.80 1,002,240 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 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 Joumalize the entries in the sales and cost of goods sold accounts Assume that all sales were on account and date your journal entry March 31 Refer to the Chart of Accounts for exact wording of account titles 3. Determine the gross prefit 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 REVENUE 110 Cash 410 Sales 111 Petty Cash 810 Interest Revenue 120 Accounts Receivable 131 Notes Receivable EXPENSES 132 Interest Receivable 510 Cost of Goods Sold 141 Inventory 515 Credit Card Expense 145 Office Supplies 56 Cash Short and Over 148 Store Supplies 520 Salaries Expense 151 Prepaid Insurance 531 Advertising Expense 181 Land 602 Delivery Expense 502 Insurance Expense 191 Office Equipment 192 Accumulated Depreciation Office Equipment 624 Office Supplies Expense 506 Rent Expense 193 Store Equipment 194 Acoumulated Depreciation Store Equipment 636 Repairs Expense 537 Selling Expenses LIABILITIES 538 Store Supplies Expense 210 Accounts Payable 581 Depreciation Expense-Office Equipment 221 Notes Payable 562 Depreciation Expense-Store Equipment 222 Interest Payable 590 Miscellaneous Expense 231 Salaries Payable 710 Interest Expense 241 Sales Tax Payable EQUITY 310 Common Stock 311 Retained Earnings 32 Dividers 313 Income Summary Cost of Goods Sold Purchases Ouantity Unit Cost Total Cost Total Cost Quantity Date Quantity 20 2.00 Jan 1 $85.00 $475 200 7200 7.20 10 10. 2.800 $58.00 $150.800 20 s 28 5 $ 30 S s Feb 5 5 10 10 $ 10 S S 10 5 Prev Inventory Quantity Unit Cost Total Cost 2,600 $58.00 $150.800 2,600 $58.00 $150.800 7,200 $68.00 $475,200 Is 15 13 S 14 PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST RET DEBIT CREDIT ASSETS LIABILITI COUNTY Final Questions 2 Ad 3. Defemine the gross profit from sales for the period, 4 Determine the ending inventory cost as of March 31. 13 5 Based upon the preceding data, would you expect the ending inventory using the last-in first-our method to be higher orlawer? Higher