Solve using FIFO method

Purchases Unit Cost Total Cost Cost of Goods Sold Unit Total Quantity Cost Cost Inventory Unit Cost $1,200 $ Quantity Date Apr 3 8 Quantity 25 Total Cost 30,000 22.500 $85 11 3 9 1 2 3 4 5 6 7 30 May 8 10 19 28 June 5 16 21 29 50 31 32 33 34 35 36 37 3B 39 28 30 Balances 2. JOURNAL Description Debit Credit 40 41 42 43 44 45 46 47 Accounts Receivable Sales 11 Cost of Goods Sold Inventory 48 3. . Gross profit for the sales petiod 49 50 51 52 53 54 55 56 57 58 Ending inventory cost . Pr. 6-1B + Ready Date Transaction Per Unit Total Jan. 1 10 28 30 Feb. 5 10 16 28 Inventory Purchase Sale Sale Sale Purchase Sale Sale Purchase Sale Purchase Sale Number of Units 7,500 22,500 11,250 3,750 1,500 54,000 27,000 25,500 45,000 30,000 7,500 26,250 $75.00 $ $ 562,500 85.00 1,912,500 150.00 1,687,500 150.00 562,500 150.00 225,000 87.50 4,725,000 160.00 4,320,000 160.00 4,080,000 89.50 4,027,500 160.00 4,800,000 90.00 675,000 160.00 4,200,000 Mar. 5 14 25 30 Instructions 1. Record the inventory, purchases, and cost of goods 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 goods sold for the period. Joumalize the erties in the sales and cost of goods sold accounts. Assume that all sales were on account. 3. Determine the gross profit from sales for the period. Answer Check Figure: $8,983,125 4. Determine the ending inventory cost as of March 31 5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be highet or lower