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In: AccountingThe beginning inventory at Midnight Supplies and data onpurchases and sales for a three-month period...The beginning inventory at Midnight Supplies and data onpurchases and sales for a three-month period ending March 31, areas follows:DateTransactionNumber of UnitsPer UnitTotalJan.1Inventory2,500$52.00$130,00010Purchase7,80060.00468,00028Sale3,750104.00390,00030Sale1,200104.00124,800Feb.5Sale500104.0052,00010Purchase17,50062.001,085,00016Sale8,600109.00937,40028Sale8,900109.00970,100Mar.5Purchase14,20063.60903,12014Sale10,200109.001,111,80025Purchase3,40064.00217,60030Sale7,900109.00861,100Instructions1.Record the inventory, purchases, and cost of merchandise solddata in a perpetual inventory record similar to the one illustratedinExhibit 3, using the first-in, first-out method.2.Determine the total sales and the total cost of merchandisesold for the period. Journalize the entries in the sales and costof merchandise sold accounts. Assume that all sales were on accountand date your journal entry March 31. Refer to the Chart ofAccounts 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 inventoryusing the last-in, first-out method to be higher or lower?