Merchandise Inventory on the Balance Sheet Based on the data below, how would the merchandise inventory appear on the balance sheet, assuming that the lower of cost or market is used and the cost is determined by the FIFO method? Total cost: $74,300 Total maket: 572,900 Lower of cost or market: $70,400 The merchandise inventory would appear in the section, as follows: The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 , are as follows: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method, Under UFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Round unit cost to two decimal places, If necessary. Midnight Supplies erpetual Inventory Account LIFO Method e three-months ended March 31 2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period. 3. Determine the ending inventory cost as of March 31