Instructions 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. Inventory 7,500 $75.00 $562,500 10 Purchase 22,500 85.00 1,912,500 28 Sale 11,250 150.00 1,687,500 30 Sale 3,750 150.00 562,500 Feb. 5 Sale 1,500 150.00 225,000 10 Purchase 54,000 87,50 4,725,000 16 Sale 27,000 160.00 4,320,000 28 Sale 25,500 160.00 4,080,000 Mar 5 Purchase 45,000 89.50 4,027,500 14 Sale 30,000 160.00 4,800,000 25 Purchase 7,500 90.00 675,000 30 Sale 26,250 160.00 4,200,000 Instructions 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 and date your journal entry March 31. Refer to the Chart of Accounts accounts. Assume that all sales weren acco for exact wording of unt 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? Shaded cels have feedback X Jounal ACCOUNTING FOUATION UABILITIES ASSETS EQUITY DESCRIPTION DEBIT CREDIT POST REE DATE 2 o/ 10 Points Feedback v Check My Work y taking the number of units sold times their sale prices for all sales and adding these amounts together. The total cost of merchandise sold can be obtained by adding the Total sales are obta FIFO costs in the perpetual inventory record. When the perpetual inventory system is used, revenue is recorded each ime a sale is made along with an entry to record the cost of the merchandise sold. For this problem, however, prepare one journal entry for the sale on account and one for the cost of merchandise sold Journal Final Questions 3. Determine the gross profit from sales for the period. Q Feedback Check My Work Sales minus cost of merchandise sold equals gross profit. 2 4. Determine the ending inventory cost as of March 31