FIFO perpetual inventory Instructions FIFO Chart of Accounts Journal Final Questions Instructions The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31, are as follows: Date Transaction Per Unit $58.00 Total $150,800 Jan. Inventory 66.00 475,200 10 28 30 Purchase Sale Sale 8 8 Feb Sale 8 8 Number of Units 2,600 7.200 3,950 1,300 500 17,500 9,200 8,000 14,400 10,100 3,300 7,900 8 10 16 28 5 14 25 30 8 458,200 150,800 58,000 1,190,000 1.113,200 968,000 1,002,240 1,222,100 231,000 955,900 Purchase Sale Sale Purchase Sale Purchase Sale Mar 69.60 121.00 70.00 121.00 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. Journalize the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account and date your journal entry March 31. Refer to the Chart of Accounts for exact wording of account titles 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 first-out method to be higher or lower? Purchases Cost of Merchandise Sold Inventory Un Cost Total Cost Unit Cost Total Cost Quantity Unit Cast 2.600 58.00 5.80 Inventory ost Quantity Unit Cost Total Cost 2,600 2,600 7,200 58.00 58.00 150,800 150,800 475,200 66.00 150,800 89,100 85,800 5,850 4,550 66.00 66.00 386,100 300,300V 2 Determine the total sales and the total cost of merchandise sold for the period. Joumalize the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account and date your journal entry March 31. Refer to the Chart of Accounts for exact wording of accountities. PAGE 10 ACCOUNTING EQUATION JOURNAL DESCRIPTION POST. REF CREDIT A SSETS LIABILITIES EQUITY Final Questions 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? Higher Lower