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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
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 Total 3,000 7,100 4,200 1,300 500 18,500 8,900 8,200 14,500 10,000 3,400 8,000 Per Unit $56.00 64.00 112.00 112.00 112.00 66.00 117.00 117.00 67.60 117.00 68.00 117.00 1 Inventory 10 Purchase 28 Sale 30 Sale $168,000 454,400 470,400 145,600 56,000 1,221,000 1,041,300 959,400 980,200 1,170,000 231,200 936,000 Jan Feb 5 Sale 10 Purchase 16 Sale 28 Sale Mar 5 Purchase 14 Sale 25 Purchase 30 Sale Instructions 1. Record the inventory, purchases, and cost of merchandise 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 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 of 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
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