The beginning inventory at Midnight Supplies and data on purchases and sales for a three month period ending March 31 are as follows: Instructions 1. Record the inventory, purchases, and cost of goods sold data in a perpetual imentory record similar to the one illustrated in Exhibit 3 using the first-in, first-out method. 2. Determine the fotal sales and the total cost of goods sold for the period. Journalize the entries in the saies and cost of goods sold accounts: Assume that all sales were on account and date your joumal entry March 31. Refer to the Chart of Accounts for exact wording of account tities. 3. Determine the gross profit from sales for the period 4. Determine the ending inventary cost as of March 31 5. Based upan the preceding data, would you expect the ending imventary using the last-in first-out methed to be higher or lower? 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 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 EQUITY 310 Common Stock 3. Determine the gross proft from sales for the peniod. Points: 0/1 Feedback Cheok My Work Sales minus cast of goods sold equals gross profit. 4. Defermine the ending inventory cost as of March 31 Feedoack Check My Work The ending inventory is what is lef after subtracting the cost of goods sold from the goods available for sale. Multiply the units remaining after the last sale by their corresponding most recent layer cost to determine the FiFO cost of the ending inventory