The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:

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. Journalize the entries 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.
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 higher or lower?

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 Number of Units Date Transaction Total 75.00562,500 7,500 22,500 Jan. Inventory 10 Purchase 28 Sale 30 Sale 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 3,750 Feb. 5 Sale 10 Purchase 16 Sale 28 Sale 54,000 27,000 25,500 45,000 30,000 7,500 26,250 Mar. 5 Purchase 14 Sale 25 Purchase 30 Sale 2