The beginning inventory at Midnight Supplies and data on purchases and sales for a three month period ending March 31 are as follows. Complete the instructions. Instructions1.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 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 ending inventory using the last-in, first-out method to be higher or lower? FIFO perpetual inventoryInstructionsChart of AccountsFIFOJournalFinal QuestionsFIFO1. 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. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold UnitCost column and in the Inventory Unit Cost column.JournalDatePurchasesCost of Goods SoldInventoryDateQuantityUnit CostTotal CostQuantityUnit CostTotal CostQuantityUnit CostTotal Cost2. 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 accountJan. 1$$and date your journal entry March 31. Refer to the Chart of Accounts for exact wording of account titles.10$2$$$10$$PAGE 1028JOURNAL28$$$ACCOUNTING FOUATION30$$$$DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1Feb. 5$$$$10$$210$3162$416$2$$$28$$$Mar. 52$2$$$$$14$2$14$$$$252$2$$25$$30$$$$30$$31Balances$Final Questions3. Determine the gross profit from sales for the period.244. 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?O LowerO Higher%24 InstructionsChart of AccountsGeneral LedgerThe beginning inventory at Midnight Supplies and data on purchases and sales for a three month period ending March 31 are as follows:ASSETSREVENUEDateTransaction Number of UnitsPer UnitTotal110 Cash410 Sales1 Inventory$130,000Jan.2,500$52.00111 Petty Cash610 Interest Revenue10Purchase7,80060.00468,000120 Accounts Receivable28Sale3,750104.00390,000131 Notes ReceivableEXPENSES30Sale1,200104.00124,800132 Interest Receivable510 Cost of Goods SoldFeb.Sale500104.0052,000141 Inventory515 Credit Card Expense10Purchase17,50062.001,085,000145 Office Supplies516 Cash Short and Over16Sale8,600109.00937,400146 Store Supplies520 Salaries Expense28Sale8,900109.00970,100151 Prepaid Insurance531 Advertising ExpenseMar.5Purchase14,20063.60903,120181 Land532 Delivery Expense14Sale10,200109.001,111,800191 Office Equipment533 Insurance Expense25Purchase3,40064.00217,600192 Accumulated Depreciation-Office Equipment534 Office Supplies Expense30Sale7,900109.00861,100193 Store Equipment535 Rent Expense194 Accumulated Depreciation-Store Equipment536 Repairs ExpenseInstructions537 Selling Expenses1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using theLIABILITIES538 Store Supplies Expensefirst-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.210 Accounts Payable561 Depreciation Expense-Office EquipmentAssume 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.221 Notes Payable562 Depreciation Expense-Store Equipment3. Determine the gross profit from sales for the period.222 Interest Payable590 Miscellaneous Expense4. Determine the ending inventory cost as of March 31.231 Salaries Payable710 Interest Expense5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?241 Sales Tax Payable

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Description: The beginning inventory at Midnight Supplies and data on purchases and sales for a three month period ending March 31 are as follows. Complete the instructions. Instructions1.Record the inventory, purchases, and cost of goods sold data in a perpetual

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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	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 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 ending inventory using the last-in, first-out method to be higher or lower?