The beginning inventory at Midnight Supplies and data on purchases and sales for a Series A OB PR 7-1A FIFO perpetual inventory month period ending March 31, are as follows: Date Jan. 1 10 28 30 Feb. 5 10 16 28 Mar. 5 14 25 30 Transaction Inventory Purchase Sale Sale Sale Purchase Sale Sale Purchase Sale Purchase Sale Number of Units 7,500 22,500 11,250 3,750 1,500 54,000 27,000 25,500 45,000 30,000 7,500 26,250 Per Unit $ 75.00 85.00 150.00 150.00 150.00 87.50 160.00 160.00 89.50 160.00 90.00 160.00 Total $ 562,500 1,912,500 1,687,500 562,500 225,000 4,725,000 4,320,000 4,080,000 4,027,500 4,800,000 675,000 4,200,000 Instructions 1. Record the inventory, purchases, and cost of merchandise sold data in a inventory record similar to the one illustrated in Exhibit 3, using the first-i method. 2. Determine the total sales and the total cost of merchandise sold for the peric ize the entries in the sales and cost of merchandise sold accounts. Assume th were on account. 3. Determine the gross profit from sales for the period. 387 Chapter 7 Inventories 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