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 $64.00 Jan Total $160.000 1 Inventory 2,500 10 Purchase 7,600 7200 547.200 28 Sale 3,700 128.00 30 473,600 179.200 Sale 1.400 128.00 Feb 5 Sale 500 128.00 64.000 10 Purchase 18.500 74.00 1.369.000 16 Sale 8.900 133.00 1.183.700 28 Sale 8,500 133.00 1.130,500 Mar 5 Purchase 15.000 75 60 1.134,000 1.330,000 14 Sale 10.000 133.00 25 Purchase 3.300 76.00 250.800 30 Sale 7,650 133.00 1,017.450 Instructions 1. Record the inventory, purchases, and cost of merchandise old data in a perpetual inventory record similar to the one illustrated in Exhibit 3 using the first in, first-out method Instructions 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one wlustrated in Exhibit 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 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 to be higher or lower? CHART OF ACCOUNTS Midnight Supplies General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 120 Accounts Receivable 131 Notes Receivable EXPENSES 132 Interest Receivable 510 Cost of Merchandise Sold 515 Credit Card Expense 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 151 Prepaid Insurance 181 Land 532 Delivery Expense 533 Insurance Expense 191 Office Equipment 192 Accumulated Depreciation Office Equipment 193 Store Equipment 534 Office Supplies Expense 535 Rent Expense 191 Office Equipment 192 Accumulated Depreciation Office Equipment 193 Store Equipment 194 Accumulated Depreciation Store Equipment LIABILITIES 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 210 Accounts Payable 221 Notes Payable 222 Interest Payable 231 Salaries Payable 241 Sales Tax Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary 2 Determine the total sales and the total cost of merchandise sold for the period Journeure the entries in the sales and cost of merchande sol accounts. Assume that a sales were on account and date your journal entry March 31. Refer to the Chart of Accounts for exact wording of accounts BOE 10 JOURNAL ACCOUNTING EQUATION OSO POSTER CHOR ASSET 1 LILITIES COUT Final Questions 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? Lower O Higher