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 Transaction Number of Units Per Unit Total Jan. 1 Inventory 2,500 $52.00 $130,000 10 Purchase 7,800 60.00 468,000 28 Sale 3,750 104.00 390,000 30 Sale 1.200 104.00 124,800 Feb 5 Sale 500 104.00 52.000 10 Purchase 17,500 62.00 1,085,000 16 Sale 8,600 109.00 937,400 28 Sale 8,900 109.00 970, 100 Mar. 5 Purchase 14,200 63.60 903,120 14 Sale 10,200 1,111,800 109.00 64.00 25 Purchase 3,400 217,600 30 Sale 7.900 109.00 861,100 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. 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. 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 inventory using the last in first-out method to be higher or lower? 2 more Chart FIFO Purchases Cost of Merchandise Sold Una Cost Unit Cost Total Cost Total Cost Quantity Une Cost 10 10 10 10 1 16 20 5 14 14 25 30 Total Cost Jou 2 Deo and the total cost of merchandise for the permette and cost of chade Aumeron account and colour journey the Carol Accounts for wording of account JOURNAL ACCOUNTING EQUATION DATE BE ROSE CHERY Final Questions 2 ex 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 inventory using the last-in, first-out method to be higher or lower? Higher O Lower