The beginning inventory at Funky Party Supplies and data on purchases and sales for a three-month period ending March 31, 2016, are as follows:

Date		Transaction	Number of Units	Per Unit	Total
Jan.	1	Inventory	2,500	$70.00	$175,000
	10	Purchase	8,000	78.00	624,000
	28	Sale	3,800	140.00	532,000
	30	Sale	1,250	140.00	175,000
Feb.	5	Sale	500	140.00	70,000
	10	Purchase	17,000	80.00	1,360,000
	16	Sale	9,100	145.00	1,319,500
	28	Sale	8,700	145.00	1,261,500
Mar.	5	Purchase	14,300	81.60	1,166,880
	14	Sale	9,800	145.00	1,421,000
	25	Purchase	3,000	82.00	246,000
	30	Sale	7,900	145.00	1,145,500

	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 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 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, 2016.
5.	Based upon the preceding data, would you expect the inventory using the last-in, first-out method to be higher or lower?

FIFO 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 first-in, first-out method. Inventory Cost of Merchandise Sold Purchases Date Total Cost Quantity Unit Cost Unit Cost Total Cost Total Cost Quantity Unit Cost Quantity 2016 Jan. 1 10 10 30 Feb. 5 10 10 16 16 Mar. 5 25 31 Balances