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 2500 $6400 $160,000 10 Purchase 7.600 7200 547,200 28 Sale 3,700 473,600 12800 128.00 30 Sale 1,400 500 179,200 64,000 Feb 5 Sale 128.00 10 Purchase 18.500 74.00 1,369,000 16 8.900 133 00 133 00 28 Sale 8,500 1.183,700 1,130,500 1.134,000 Mar 5 Purchase Sale 15,000 10.000 14 75 60 133 00 76.00 25 3.300 Purchase Sale 1,330,000 200,000 1017.450 30 7,650 133 00 Instructions 1 Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one iustrated in Exit 3, using the Birstun first out method 2 Determine the total sales and the folar cost of goods sold for the period Journalize me entries in the sales and cost of goods sold accounts Assume that all sales were on account and date your journal entry March 31 Refer to the Charlor Accounts for exact wording of accounts 3. Determine the gross profit from sales for the period 4 Determine me ending inventory cost as of March 31 Based upon the preceding data, would you expect the ending inventory using the fastest out method to be higher or lower? Exhibit 3 Entries and Perpetual Inventory Account (FIFO) Jan 4 Accounts Receivable Sales 4 Cost of Goods Sold Inventory 21.000 21000 14,000 14 poo 10 Inventory Accounts Payable 11,200 11,200 Item 1278 Cost of Purchases Goods Sold Inventory Unit Total Unit Total Unit Total Date Quantity Cost Cost Quantity Cost Cost Quantity cost Cost Jan. 1 1,000 20.00 20,000 -4 700 20.00 14,000 300 20.00 6.000 10 500 22.40 11,200 300 20.00 6,000 500 22.40 11.200 22 300 20.00 6,000 60 22.40 1,344 440 22.40 9,856 28 240 22.40 5,376 200 22.40 4,480 30 600 2330 13,980 200 22.40 4,480 600 23.30 13.980 31 Balances 26,720 18.460 22 Accounts Receivable 22 Cost of Goods Sold Inventory 10,000 10.900 7,144 7,144 7,200 7,200 28 Accounts Receivable Sales 21 Cost of Goods Sold Inventory 5.376 3.376 12,000 30 Intory Accounts Payable Cost of goods sold January 31 Inventory 13.900