For the FIFO only solve the cells that have a dark gray outline.

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 Jan. Per Unit $56.00 Transaction Number of Units 1 Inventory 3,000 10 Purchase 7,100 28 4,200 30 Sale 1,300 64.00 Total $168,000 454,400 470,400 145,600 Sale 112.00 112.00 Feb. 5 Sale 500 112.00 56,000 1,221,000 10 Purchase 66.00 16 Sale 117.00 28 Sale 117.00 Mar. 5 Purchase 18,500 8,900 8,200 14,500 10,000 3,400 8,000 67.60 1,041,300 959,400 980,200 1,170,000 231,200 936,000 14 Sale 117.00 25 Purchase 68.00 30 Sale 117.00 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. 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. 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 CHART OF ACCOUNTS Midnight Supplies General Ledger ASSETS REVENUE 110 Cash 410 Sales LIABILITIES 538 Store Supplies Expense 610 Interest Revenue 111 Petty Cash 120 Accounts Receivable 210 Accounts Payable 561 Depreciation Expense-Office Equipment 221 Notes Payable 562 Depreciation Expense-Store Equipment 131 Notes Receivable EXPENSES 590 Miscellaneous Expense 132 Interest Receivable 510 Cost of Goods Sold 222 Interest Payable 231 Salaries Payable 710 Interest Expense 515 Credit Card Expense 141 Inventory 145 Office Supplies 241 Sales Tax Payable 516 Cash Short and Over 520 Salaries Expense 146 Store Supplies EQUITY 151 Prepaid Insurance 531 Advertising Expense 310 Common Stock 181 Land 532 Delivery Expense 311 Retained Earnings 191 Office Equipment 533 Insurance Expense 534 Office Supplies Expense 312 Dividends 192 Accumulated Depreciation Office Equipment 313 Income Summary 193 Store Equipment 535 Rent Expense 194 Accumulated Depreciation Store Equipment 536 Repairs Expense 537 Selling Expenses LIABILITIES 538 Store Supplies Expense FIFO 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 $ Journal 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. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Mar. 31 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 lest-in, first-out method to be higher or lower? O Higher O Lower