OBJ. 2 - Describe three inventory cost flow assumptions and explain how they impact the income statement and balance sheet., 3 - Determine the cost of inventory under the perpetual inventory system, using the FIFO, LIFO, and weighted average cost methods. 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 Per Unit Total of Units 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. Sale 1,500 150.00 225,000 5 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 hpill= 16057068.dockAcoUid= 1018 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. 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?al Ultra LTE Wal-out method to be higher or lower? all Perpetual Inventory OBJ. 2 - Describe three inventory cost flow assumptions and explain how they impact the income statement and balance sheet., 3 - Determine the cost of inventory under the perpetual inventory system, using the FIFO, LIFO, and weighted average cost methods. The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period are shown in Problem 7-1A Instructions 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. 2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period. 3. Determine the ending inventory cost as of March 31. WAS8021 Print Preview Weighted Average Cost Method With Perpetual Inventory OBJ. 2 - Describe three inventory cost flow assumptions and explain how they impact the income statement and balance sheet., 3 - Determine the cost of inventory under the perpetual inventory system, using the FIFO, LIFO, and weighted average cost methods. The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are shown in Problem 7-1A Instructions 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. 2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period. 3. Determine the ending inventory cost as of March 31
