The beginning inventory at Midnight Supplies and data on purchases and sales for a three month period ending March 31 are as follows:

Number of Units

Per Unit

Date

Transaction

Total

Jan. 1

7,500

$ 75.00

Inventory

Purchase

10

22,500

85.00

150.00

28 Sale

11,250

3,750

1,500

$ 562,500

1,912,500

1,687,500

562,500

225,000

150,00

30 Sale

Feb. 5 Sale

10 Purchase

16 Sale

150.00

87.50

54,000

27,000

4,725,000

4,320,000

4,080,000

160.00

160.00

89.50

25,500

45,000

4,027,500

28 Sale

Mar. 5 Purchase

14 Sale

25 Purchase

30 Sale

160.00

30,000

7,500

4,800,000

675,000

90.00

26,250

160.00

4,200,000

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.

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?

6.do the same question, using Weighted average method.