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 Per Unit Jan. 1 Transaction Number of Units Inventory 2,500 Purchase 7,800 $52.00 Total $130,000 468,000 390,000 10 60.00 28 Sale 3,750 104.00 30 Sale 1,200 104.00 Feb. 5 Sale 500 104.00 10 Purchase 17.500 62.00 16 Sale 8,600 109.00 124,800 52,000 1,085,000 937,400 970,100 903,120 1,111,800 217,600 28 Sale 8,900 109.00 Mar. 5 Purchase 14,200 63.60 14 Sale 10.200 109.00 25 Purchase 3,400 64.00 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 the exact wording of the account titles. CNOW Journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW Journals will automatically indent a credit entry when a credit amount is entered. 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, wollet you expect the inventory using the fasten. first-out mettred to be higher or lower? Instructor FIFO Chart of Accounts Wom Final Questions I: Instructions FIFO 1. Record the inventory purchases, and cost of merchandise sold data in a perpetual invertory record similar to the one iustrated in Exhibit using the first in testout mounod Date Purchases Cost of Merchandise Sold Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Jan 1 10 10 20 28 30 Feb. 5 10 10 16 Check My Work Instructions FIFO 30 Feb. 5 10 10 16 16 28 Mar 5 5 14 25 25 30 30 31 Balances instructions FIFO Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost tructions FIFO Chart of Accounts Journal Final Questions mart of Accounts CHART OF ACCOUNTS Midnight Supplies General Ledger ASSETS 110 Cash REVENUE 410 Sales 610 Interest Revenue 111 Petty Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Insurance Expense 181 Land 191 Office Equipment w Work Show Me How petual inventory etions FIFO Chart of Accounts Journal Final Questions 533 Insurance Expense of Accounts 191 Office Equipment 192 Accumulated Depreciation Office Equipment 193 Store Equipment 194 Accumulated Depreciation-Store Equipment 534 Office Supplies Expense 535 Rent Expense 536 Repairs Expense 537 Selling Expenses LIABILITIES 210 Accounts Payable 221 Notes Payable 222 Interest Payable 538 Store Supplies Expense 561 Depreciation Expense-Office Equipment 562 Depreciation Expense-Store Equipment 590 Miscellaneous Expense 710 Interest Expense 231 Salaries Payable 241 Sales Tax Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary 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 Mara sales were on account and cure your journal entry March 31. Ale to the chart of accounts for the exact wording of the accountitlos. CNOW Journals do not use thes for oumal explanation Every Nine on a journal page is used for debil or credit entries. CNOW foumal wastomatically done a credt entry when a crud around is entired PAGE 10 JOURNAL ACCOUNTING EQUATION DESCRIPTION POSTRE DET CREDIT ADSETS LALITIES TOUT 1 2 3 4 Instructions FIFO Chart of Accounts Journal Final Questions In Chart of Accounts Journal Final Questions 3. Determine the gross profit from sales for the period. 2 on $ EV 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? 1 2 Higher 5 Lower