Appendix EX 6-21 Retail method A business using the retail method of inventory costing determines that inventory at retail is $396,400. If the ratio of cost to retail price is 61%, what is the amount of inventory to be reported on the financial statements? 3. $8,983,125 PR 6-1A FIFO perpetual inventory The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows: Obj. 2, 3 ME NOW EXCEL TEMPLATE Total 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 $ 562,500 85.00 1,912,500 150.00 1,687,500 150.00 562,500 150.00 225.000 87.50 4,725,000 160.00 4,320,000 160.00 4,080,000 89.50 4,027,500 160.00 4,800,000 90.00 675,000 160.00 4,200,000 Instructions 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 the entries in the sales and cost of goods sold accounts. Assume that all sales were on account. 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