The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:DateTransactionNumber of UnitsPer UnitTotalJan.1Inventory2,500$52.00$130,000 10Purchase7,80060.00468,000 28Sale3,750104.00390,000 30Sale1,200104.00124,800Feb.5Sale500104.0052,000 10Purchase17,50062.001,085,000 16Sale8,600109.00937,400 28Sale8,900109.00970,100Mar.5Purchase14,20063.60903,120 14Sale10,200109.001,111,800 25Purchase3,40064.00217,600 30Sale7,900109.00861,100 Required: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 summary entries for the sales and corresponding cost of goods sold for the period. Assume that all sales were on account and date your journal entry March 31.3.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? Exhibit 3 Entries and Perpetual Inventory Account (FIFO)Jan. 4 Accounts ReceivableSales4 Cost of Goods SoldInventory10 InventoryAccounts Payable22 Accounts ReceivableSales22 Cost of Goods SoldInventory28 Accounts ReceivableSales28 Cost of Goods SoldInventory30 InventoryAccounts Payable21,00014,00011,20010,8007,3447,2005,37613,98021,00014,00011,20010,8007,3447,2005,37613,980Item 127BDateJan. 141022283031Purchases500600Unit TotalUnit TotalQuantity Cost Cost Quantity Cost Cost Quantity1,00020.00 14,000 300300500Balances22.40 11,200Cost ofGoods Sold23.30 13,9807003006024020.00 6,00022.40 1,34422.405,37626,720Cost ofgoods soldInventoryUnitCost CostTotal20.00 20,00020.006,00020.006,00022.40 11,20044020020060022.409,85622.404,48022.404,48023.30 13,98018,460January 31inventory

Name: The beginning inventory at Midnight Supplies and data on purchases and
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:DateTransactionNumber of UnitsPer UnitTotalJan.1Inventory2,500$52.00$130,000 10Purchase7,80060.00468,000 28Sale3,7501

"Since you have asked a question with sub-parts more than three, as per guidelines, the first three…

Answered: The beginning inventory at Midnight…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

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	Number of Units	Per Unit	Total
Jan.	1	Inventory	2,500	$52.00	$130,000
	10	Purchase	7,800	60.00	468,000
	28	Sale	3,750	104.00	390,000
	30	Sale	1,200	104.00	124,800
Feb.	5	Sale	500	104.00	52,000
	10	Purchase	17,500	62.00	1,085,000
	16	Sale	8,600	109.00	937,400
	28	Sale	8,900	109.00	970,100
Mar.	5	Purchase	14,200	63.60	903,120
	14	Sale	10,200	109.00	1,111,800
	25	Purchase	3,400	64.00	217,600
	30	Sale	7,900	109.00	861,100

	Required:
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 summary entries for the sales and corresponding cost of goods sold for the period. Assume that all sales were on account and date your journal entry March 31.
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?

Exhibit 3 Entries and Perpetual Inventory Account (FIFO)
Jan. 4 Accounts Receivable
Sales
4 Cost of Goods Sold
Inventory
10 Inventory
Accounts Payable
22 Accounts Receivable
Sales
22 Cost of Goods Sold
Inventory
28 Accounts Receivable
Sales
28 Cost of Goods Sold
Inventory
30 Inventory
Accounts Payable
21,000
14,000
11,200
10,800
7,344
7,200
5,376
13,980
21,000
14,000
11,200
10,800
7,344
7,200
5,376
13,980
Item 127B
Date
Jan. 1
4
10
22
28
30
31
Purchases
500
600
Unit Total
Unit Total
Quantity Cost Cost Quantity Cost Cost Quantity
1,000
20.00 14,000 300
300
500
Balances
22.40 11,200
Cost of
Goods Sold
23.30 13,980
700
300
60
240
20.00 6,000
22.40 1,344
22.40
5,376
26,720
Cost of
goods sold
Inventory
Unit
Cost Cost
Total
20.00 20,000
20.00
6,000
20.00
6,000
22.40 11,200
440
200
200
600
22.40
9,856
22.40
4,480
22.40
4,480
23.30 13,980
18,460
January 31
inventory

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 5 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions