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 $9,000$ $$60\mathrm{.}00$ $$540,000$

$10$ Purchase $21,00070\mathrm{.}001,470,000$

$28$ Sale $10,250140\mathrm{.}001,435,000$

$30$ Sale $5,750140\mathrm{.}00805,000$

Feb. $5$ Sale $3,500140\mathrm{.}00490,000$

$10$ Purchase $39,50075\mathrm{.}002,962,500$

$16$ Sale $15,000150\mathrm{.}002,250,000$

$28$ Sale $10,000150\mathrm{.}001,500,000$

Mar. $5$ Purchase $25,00082\mathrm{.}002,050,000$

$14$ Sale $30,000150\mathrm{.}004,500,000$

$25$ Purchase $10,00088\mathrm{.}40884,000$

$30$ Sale $19,000150\mathrm{.}002,850,000$

Required:

$1.$ 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.

$2.$ 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 $31.$

$3.$ 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 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

$1.$ 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. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

Date Purchases Cost of goods Sold Inventory

Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost.

$2.$ 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 $31.$

General Journal Instructions

Question not attempted.

PAGE $10$

JOURNALACCOUNTING EQUATION

Score: $0/51$

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY.

$3.$ Determine the gross profit from sales for the period.

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