PR 7-1A FIFO perpetual inventory Obj. 2, 3 The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31, are as follows:

Details The FIFO perpetual inventory is shown. The five columns are labeled Date, Transaction, Number of units, Per unit, and Total. The data given are as follows: Jan. 1, Inventory, 7,500, $ 75.00, $ 562,500; Jan. 10, Purchase, 22,500, 85.00, 1,912,500; Jan. 28, Sale, 11,250, 150.00, 1,687,500; Jan. 30, Sale, 3,750, 150.00, 562,500; Feb. 5, Sale, 1,500, 150.00, 225,500; Feb. 10, Purchase, 54,000, 87.50, 4,725,000; Feb. 16, Sale, 27,000, 160.00, 4,320,000; Feb. 28, Sale, 25,500, 160.00, 4,080,000; Mar. 5, Purchase, 45,000, 89.50, 4,027,500; Mar. 14, Sale, 30,000, 160.00, 4,800,000; Mar. 25, Purchase, 7,500, 90.00, 675,000; Mar. 30, Sale, 26,250, 160.00, 4,200,000. INSTRUCTIONS 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. 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 accounts. Assume that all sales were on account. Determine the gross profit from sales for the period. SHOW ANSWER Determine the ending inventory cost as of March 31. Based upon the preceding data, would you expect the inventory using the last-in, first-out method to be higher or lower?