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	2,500	$52.00	$130,000
		10	Purchase	7,800	60.00	468,000
		28	Sale	3,750	104.00	390,000
		30	Sale	1,200	104.00	124,800
Feb.		5	Sale	500	104.00	52,000
		10	Purchase	17,500	62.00	1,085,000
		16	Sale	8,600	109.00	937,400
		28	Sale	8,900	109.00	970,100
Mar.		5	Purchase	14,200	63.60	903,120
		14	Sale	10,200	109.00	1,111,800
		25	Purchase	3,400	64.00	217,600
You are in Column Date		You are in Column Date30	You are in Column TransactionSale	You are in Column Number of Units7,900	You are in Column Per Unit109.00	You are in Column Total861,100
	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 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.
5.	Based upon the preceding data, would you expect the inventory using the last-in, first-out method The method of inventory costing based on the assumption that the cost of merchandise sold is the cost of the most recent purchases. to be higher or lower?