OBJ. 2, 3 PR 7-1A FIFO perpetual inventory The beginning inventory at Midnight Supplies and data on purchases and sales fora three-month period ending March 31, are as follows: Number Per of Units Unit Total Date Transaction Jan. 1 Inventory 10 Purchase 28 Sale 30 Sale 7,500 $ 75.00 562,500 22,500 85.00 1,912,500 11,250 150.00 1,687,500 3,750 150.00 562,500 Feb. 5 Sale 1500 150.00 225,000 10 Purchase 16 Sale 28 Sale 54,000 87.50 4,725,000 27,000 160.00 4,320,000 25,500 160.00 4,080,000 45,000 89.50 4,027,500 0,000 160.00 4,800,000 Mar. 5 Purchase 14 Sale 25 Purchase 30 Sale 7,500 90.00 26,250 160.00 675,000 4,200,000 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. Jour- nalize the entries in the sales and cost of merchandise 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 inventory using the last-in, first-out method to be higher or lower