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 Jan 1 Inventory 10 Purchase 28 Sale Number of Units Per Unit 2,500 $64.00 7,600 72.00 3,700 128.00 Total S160,000 547,200 473,600 30 Sale 1,400 128.00 179,200 Feb. 5 Sale 500 128.00 64,000 1,369,000 10 Purchase 18,500 74.00 16 Sale 133.00 1,183,700 28 Sale 133.00 Mar. 5 Purchase 75.60 8.900 8,500 15,000 10,000 3,300 7,650 14 Sale 1.130,500 1,134,000 1,330,000 250,800 1,017,450 25 133.00 76.00 133.00 Purchase 30 Sale Instructions 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one Mustrated 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 joumal 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? Midnight Supplies General Ledger REVENUE 410 Sales 610 Interest Revenue ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Office Equipment 192 Accumulated Depreciation Office Equipment 193 Store Equipment 194 Accumulated Depreciation-Store Equipment EXPENSES 510 Cost of Goods Sold 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Insurance Expense 534 Office Supplies Expense 535 Rent Expense 536 Repairs Expense 537 Seling Expenses 538 Store Supplies Expense 561 Depreciation Expense-Office Equipment 562 Depreciation Expense-Store Equipment 590 Miscellaneous Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 221 Notes Payable 222 Interest Payable 231 Salaries Payable 241 Sales Tax Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends Encontre LOWER OS Cocos Cafe 18 15 10 13 13 10 18 1 II 16 W 5 1 2. Determine the total sales and the total cost of goods sold for the period. Journalze 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 bles PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST RET DEBIT CREDIT ASSETS CABUTI LOUITY 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? O Lower O Higher