he beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows: Required: 1. Record the inventary, purchases, and cost of goods sold data in a perpetual inventory record similar to the one wistrated in Exhibit 3, using the first-in, first-out method. 2. Determine the fotal sales and the total cost of goods sold for the period. Joumalize summary entries for the salos and corresponding cost of goods sold for the period. Assume that all sales were on account and date your jouma/ enty March 31. 3. Determine the gross proht from sales for the poriod. 4. Determine the ending inventary cost as of March 3r. 5. Based upon the preceding data, would you expoct the ending inventory using the lastin. First-out method to be higher or lower? Instructions Chart of Accounts ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 120 Accounts Receivable 131 Notes Recelvable EXPENSES 132 Interest Receivable 510 Cost of Goods Sold 141 Inventory 515 Credit Card Expense 145 Office Supplies 516 Cash Short and Over 146 Store Supplies 520 Salaries Expense 151 Prepaid Insurance 531 Advertising Expense 181 Land 532 Delivery Expense 191 Office Equipment 533 Insurance Expense 192 Accumulated Depreciation-Office Equipment 534 Office Supplies Expense 193 Store Equipment 535 Rent Expense 194 Accumulated Depreciation-Store Equipment 536 Repairs Expense 537 Selling Expenses LIABILITIES 538 Store Supplies Expense 210 Accounts Payable 561 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 312 Dividends 2. Decermine the total sales and the total cost of goods sold tor the peniod. Jounalize summary entries for the sales and comesponding cost of goods sold for the penod. Assume that al salea Goneral doumal Instructions 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? Lower Higher