LIFO perpetual inventory The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as foliows: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one iliustrated in Exhibit 4, using the last-in, first-out method. Under LIFO, If units are in inventory at two different costs, enter the units with the HFGHER unit cost first in the Cost of Goods Sald Unit Cost column and LowER unit cost first in the Ifventory Unit Cost column. Round unit cost to two decimal places, if necessary. Feb, 28 Mar, 5 25,000 32,00 2,050,000 Ma., 14 Mar. 25 10,000 88.40 8An4,000] Mar. 30 Mac 31 Bstances 2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the periodi. Total sales Total cost of gooas sold Mar. 31 Balances 2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period. 3. Determine the ending inventory cost as of March 31. Foedback T Check My Work 1. When the perpetual inventory system is used, revenue is recorded each time a sale is made along with an entry to record the LIFO means the last units purchased are assumed to be the first to be sold. Therefore after each sale, the remaining or ending inv earliest purchases. Think of your inventory in terms of "layers." The first sale comes from the most recent purchase layer. When d. costing of each sale ask yourself: "Is there enough inventory left in the most recent purchase to cover the sale?" If not, the other the second most recent purchase layer, which then contains the most recent costs. Continue this process for each transaction. If y c correctly, the remaining units making up ending inventory will be costed at the January 1 beginning inventory and January 10 unit 2. Total sales are obtained by taking the number of units sold times their sale prices for all sales and adding these amounts togethe can be obtained by adding the LIFO costs in the perpetual inventor record. Sales minus cost of goods sold equals gross profit. 3. The ending inventory is what is left after subtracting the cost of goods sold from the goods avallable for sale, Multiply the units re their corresponding earliest layer cost to determine the LFFO cost of the ending inventory