OBJ. 2, 3 PR 7-1A FIFO perpetual inventory The beginning inventory at Midnight Supplies and data on purchases and three-month period ending March 31, are as follows: Number of Units 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 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 85.00 150.00 150.00 150.00 87.50 160.00 160.00 89.50 160.00 90.00 160.00 Total $ 562,500 1,912,500 1,687,500 562,500 225,000 4,725,000 4,320,000 4,080,000 4,027,500 4,800,000 675,000 4,200,000 Instructions 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetu inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-o method. Online Mondo Determine the total sales and the total cost of merchandise sold for the period. Jou nalize the entries in the sales and cost of merchandise sold accounts. Assume that sales were on account. 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