The beginning inventory at Midnight Supplies and data on purchases and sales for a three$-$month period ending March $31$ are as follows:

Required:

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.

Determine the total sales and the total cost of goods sold for the period. Journalize summary entries for the sales and corresponding cost of

goods sold for the period. Assume that all sales were on account and date your journal entry March $31.$

Determine the gross profit from sales for the period.

Determine the ending inventory cost as of March $31.$

Based upon the preceding data, would you expect the ending inventory using the last$-$in$,$ first$-$out method to be higher or lower? CHART OF ACCOUNTS

Midnight Supplies

General Ledger

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

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

REVENUE

$410$ Sales

$610$ Interest Revenue

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 General Journal Instructions

Question not attempted.Determine the gross profit from sales for the period.

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Determine the ending inventory cost as of March $31.$