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 2,600 $54.00 $140,400 10 Purchase 7,000 62.00 434,000 28 Sale 3,850 108.00 415,800 30 Sale 1,300 108.00 140,400 Feb. 5 Sale 500 108.00 54,000 10 Purchase 17,500 64.00 1,120,000 16 Sale 8,700 113.00 983,100 28 Sale 8,600 113.00 971,800 Mar. 5 Purchase 14,000 65.60 918,400 14 Sale 10,100 113.00 1,141,300 25 Purchase 3,300 66.00 217,800 30 Sale 7,750 113.00 875,750 FIFO Shaded cells have feedback 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit column and in the Inventory Unit Cost column. Date Purchases Cost of Goods Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Jan. 1 10 7,000 $62.00 $434,000 2,600 2,600 7,000 $54.00 $54.00 $62.00 $140,40 $140,40 $434,00 10 28 $54.00 28 $62.00 2,600 1,250 1,300 500 $140,400 $77,500 $80,600 $31,000 30 $62.00 $62.00 $62.00 $62.00 $62.00 Feb. 5 5,750 4,450 3,950 3,950 17,500 $62.00 $356,50 $275,90 $244,90 $244,90 $1,120,00 10 17,500 $64.00 $1,120,000 10 $64.00 16 $62.00 16 3,950 4,750 8,600 $64.00 $244,900 $304,000 $550,400 $64.00 12,750 4,150 $816,00 $265,60 28 $64.00 $64.00 Mar. 5 14,000 $ $918,400 $ $ 5 $ |$ 14 $ $ 14 $ $ $ $ 25 3,300 $66.00 $217,800 $ $ 25 $ $ 30 $ $ $ $ 30 $ $ 31 Balances |$ $ Chart of Accounts CHART OF ACCOUNTS 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 Selling 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 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 journal entry March 31. Refer to the Chart of Accounts for exact wording of account titles. Question not attempted. PAGE 10 Score: 0/51 ACCOUNTING EQUATION JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIESQUITY 1 2 3 4 3. Determine the gross profit from sales for the period. $ Feedback Check My Work Sales minus cost of goods sold equals gross profit. 4. Determine the ending inventory cost as of March 31. $ Feedback Check My Work The ending inventory is what is left after subtracting the cost of goods sold from 5. Based upon the preceding data, would you expect the ending inventory using the ! Higher Lower Feedback Check My Work Consider how prices were moving. Remember FIFO reports higher gross profit