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 follows:

Date Transaction Number

of Units Per Unit Total

Jan. 1 Inventory 7,500 $75.00 $562,500

10 Purchase 22,500 85.00 1,912,500

28 Sale 11,250 150.00 1,687,500

30 Sale 3,750 150.00 562,500

Feb. 5 Sale 1,500 150.00 225,000

10 Purchase 54,000 87.50 4,725,000

16 Sale 27,000 160.00 4,320,000

28 Sale 25,500 160.00 4,080,000

Mar. 5 Purchase 45,000 89.50 4,027,500

14 Sale 30,000 160.00 4,800,000

25 Purchase 7,500 90.00 675,000

30 Sale 26,250 160.00 4,200,000

Required:

1. Record the inventory, purchases, and cost of merchandise sold data

in a perpetual inventory record similar to the one illustrated 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

HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost

column and LOWER unit cost first in the Inventory Unit Cost column.

Round unit cost to two decimal places, if necessary.

2. Determine the total sales, the total cost of merchandise sold, and

the gross profit from sales for the period.

Total sales $

Total cost of merchandise sold $

Gross profit from sales $

3. Determine the ending inventory cost as of March 31.