The beginning inventory at Midnight Supplies and data on purchases and sales for a three month period ending March 31 are as follows Date Per Unit 1 352.00 Transaction Inventory Purchase Sale Sale Number of Units 2.500 7.800 3750 10 50.00 28 30 Total $130,000 458.000 390,000 124.000 52.000 1,200 Feb. 104.00 104.00 104.00 62.00 5 Sale 500 10 17 500 16 Purchase Sale Sale 8,600 10000 1.085,000 937,400 970.100 28 8.900 109.00 Mar 5 Purchase 14,200 63.60 10.200 909,120 1.111.800 25 Sale Purchase Sale 109.00 64.00 217800 30 3.400 7.900 109.00 861.100 Instructions 1. Record the inventory purchases, and cost of goods soldats in a perpetual inventory record similar to the one ilustrated in Exhibit3 using the first in first-out method 2. Determine the total sales and the total cost of goods sold for the period. Joumalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account and cute your jouma entry March 31. Refer to the Chart of Accounts for exact wording of accounties 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 date, would you expect the ending inventory using the lost in first-out method to be higher or lower? Chart of Accounts CHART OF ACCOUNTS Midnight Supplies General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Interest Revenue 111 Petty Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable EXPENSES 141 Inventory 145 Office Supplies 146 Store Supplies 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 151 Prepaid Insurance 181 Land 191 Office Equipment 192 Accumulated Depreciation Office Equipment 193 Sinne Frimant 535 Rent Expense 194 Accumulated Depreciation-Store Equipment LIABILITIES 536 Repairs Expense 537 Selling Expenses 538 Store Supplies Expense 561 Depreciation Expense-Office Equipment 562 Depreciation Expense-Store Equipment 590 Miscellaneous Expense 210 Accounts Payable 221 Notes Payable 222 Interest Payable 231 Salaries Payable 241 Sales Tax Payable 710 Interest Expense EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends Coat of Good Son Unit Cost Total Cost Total Coat Jan 1 10 S 10 $ $ $ $ $ $ $ $ Fo5 S 10 10 $ $ $ $ 5 16 16 $ 28 $ Mars S 5 $ $ 14 S 14 $ 25 25 $ 30 J1 Balances Journal 2. Determine the fol and the total cost of goods sold for the period. bumalize the entries in these and cost of goods sold accounts. Assume that alles were on account and date your journal Accounts for exact wording of account NGE 10 ACCOUNTING EQUATION JOURNAL CHON DCM EQUITY ASSETS POST DATE DESCRIPTION 5/10 ntld-727AR 1 Final Questions 3. Define the gross profit from sales for the period $ Determine the ending inventory cost as of March 31 5. Based upon the preceding data, would you expect the ending inventory using the fastei frat-out method to be higher or lower? O Higher O Lower