The PR 7-4 using PR 7-1A information

PR 7-4A Periodic inventory by three methods a three-month period are shown in Problem 7-1A. Instructions OBJ. 2, 3 The beginning inventory for Funky Party Supplies and data on purchases and sales for 1. Determine the inventory on March 31, 2016, and the cost of goods sold for the three month period, using the first-in, first-out method and the periodic inventory system. 2. Determine the inventory on March 31, 2016, and the cost of goods sold for the three- month period, using the last-in, first-out method and the periodic inventory system. (Continued) 3. Determine the inventory on March 31, 2016, and the cost of goods sold for the three- month period, using the weighted average cost method and the periodic inventory system. Round the weighted average unit cost to the nearest cent. 4. Compare the gross profit and the March 31, 2016, inventories, using the following column headings: FIFO LIFO Welghted Average Sales Cost of merchandise sold Gross profit Inventory, March 31, 2016 392 378 Accounting-Warren Car EEnglish PR 7-1A The beginning inventory at Funky Party Supplies and data on purchases and sales for a FIFO perpetual inventory OBJ. 2, 3 750 three-month period ending March 31, 2016, are as follows: Number Per Unlt of Units Total Date Jan. 1 Inventory Transaction 10 Purchase 28 Sale 0 Sale 2,500 $60.00 $150,000 7,500 68.00 510,000 3,750 120.00 450,000 1,250 120.00 150,000 Chapter 7 Inventories 359 Number of Unlts Per Unlt DateTransaction Feb. 5 Sale Total 500 120.00 $ 60,000 18,000 70.00 1,260,000 9,000 125.00 1,125,000 8,500 125.00 1,062,500 15,000 71.60 1,074,000 10,000 125.00 1,250,000 72.00 180,000 8,750 125.00 1,093,750 10 Purchase 16 Sale 28 Sale Mar. 5 Purchase 14 Sale 25 Purchase 30 Sale 2,500 Instructions 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inven- tory record similar to the one illustrated in Exhibit 4, 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, 2016. 5. Based upon the preceding data, would you expect the inventory using the last-in, first-out method to be higher or lower