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 2,700 $50.00 $135,000 10 Purchase 7,300 58.00 423,400 28 Sale 4,050 100.00 405,000 30 Sale 1,200 100.00 120,000 Feb. Sale 500 100.00 50,000 10 Purchase 17,000 60.00 1,020,000 16 Sale 9,200 105.00 966,000 28 Sale 8,000 105.00 840,000 Mar. Purchase 14,300 61.60 880,880 14 Sale 10,300 105.00 1,081,500 25 Purchase 3,200 62.00 198,400 30 Sale 8,000 105.00 840,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record (in the same format as the example table I have attached) using the first-in, first-out method. The data needed is provided in the list of transactions/units/totals attached
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 the account and date your journal entry March 31. 
  Determine the gross profit from sales for the period.
4. Determine the ending inventory cost as of March 31.
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
2,700
$50.00
$135,000
10
Purchase
7,300
58.00
423,400
28
Sale
4,050
100.00
405,000
30
Sale
1,200
100.00
120,000
Feb.
Sale
500
100.00
50,000
10
Purchase
17,000
60.00
1,020,000
16
Sale
9,200
105.00
966,000
28
Sale
8,000
105.00
840,000
Mar.
5
Purchase
14,300
61.60
880,880
14
Sale
10,300
105.00
1,081,500
25
Purchase
3,200
62.00
198,400
30
Sale
8,000
105.00
840,000
Transcribed Image Text: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 2,700 $50.00 $135,000 10 Purchase 7,300 58.00 423,400 28 Sale 4,050 100.00 405,000 30 Sale 1,200 100.00 120,000 Feb. Sale 500 100.00 50,000 10 Purchase 17,000 60.00 1,020,000 16 Sale 9,200 105.00 966,000 28 Sale 8,000 105.00 840,000 Mar. 5 Purchase 14,300 61.60 880,880 14 Sale 10,300 105.00 1,081,500 25 Purchase 3,200 62.00 198,400 30 Sale 8,000 105.00 840,000
Purchases
Sold
Balance
Unit
Qty
price
Unit
Qty
price
Date
Unit
Qty
price
Total
Total
Total
03-Apr
08-Аpr| 96
48 | 450
48 450
96| 540
21,600
21,600
51,840
540
51,840
11-Apr
48 | 450
16| 540
40 | 540
21,600 80 540
8,640
21,600 40 540
40 | 540
80 600
21,600 72 600
4,800
43,200
30-Аpr
08-May 80
21,600
21,600
48,000
600
48,000
10-May
40 | 540
43,200
8
600
19-May
28-May 80
24| 600
14,400 48 600
48 | 600
28,800
660
52,800
28,800
80
660
52,800
48 600
64| 660
28,800 80 660
42,240 16
05-Jun
52,800
16-Jun
660
10,560
21-Jun 144 720 | 1,03,680
16
660
10,560
144 720 1,03,680
16| 660
56 720
28-Jun
10,560 88 720
63,360
40,320
Total
2,14,560
63,360
Transcribed Image Text:Purchases Sold Balance Unit Qty price Unit Qty price Date Unit Qty price Total Total Total 03-Apr 08-Аpr| 96 48 | 450 48 450 96| 540 21,600 21,600 51,840 540 51,840 11-Apr 48 | 450 16| 540 40 | 540 21,600 80 540 8,640 21,600 40 540 40 | 540 80 600 21,600 72 600 4,800 43,200 30-Аpr 08-May 80 21,600 21,600 48,000 600 48,000 10-May 40 | 540 43,200 8 600 19-May 28-May 80 24| 600 14,400 48 600 48 | 600 28,800 660 52,800 28,800 80 660 52,800 48 600 64| 660 28,800 80 660 42,240 16 05-Jun 52,800 16-Jun 660 10,560 21-Jun 144 720 | 1,03,680 16 660 10,560 144 720 1,03,680 16| 660 56 720 28-Jun 10,560 88 720 63,360 40,320 Total 2,14,560 63,360
Expert Solution
Step 1

As per First in First Out method(FIFO) inventory sold is from units purchased earlier, therefore units in hand contain units purchased recently.

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