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 7,500 $75.00 $562,500 10 Purchase 22,500 85.00 1,912,500 28 Sale 11,250 150.00 1,687,500 30 Sale 3,750 150.00 562,500 Feb. 5 Sale 1,500 150.00 225,000 10 Purchase 54,000 87.50 4,725,000 16 Sale 27,000 160.00 4,320,000 28 Sale 25,500 160.00 4,080,000 Mar. 5 Purchase 45,000 89.50 4,027,500 14 Sale 30,000 160.00 4,800,000 25 Purchase 7,500 90.00 675,000 30 Sale 26,250 160.00 4,200,000 Instructions 1. Record the inventory, purchases, and cost of merchandise 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 merchandise sold for the period. Journalize the entries in the sales and cost of merchandise 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 inventory using the last-in, first-out method to be higher or lower

Ending Inventory FIFO = 1010,625

Total Sales =$ 19,650,000

Cost Of Goods Sold 18639,375

Explanation:

Date     Transaction     Number of Units    Per Unit      Total

Jan. 1 Inventory               7,500                $75.00          $562,500

10 Jan Purchase            22,500                85.00          1,912,500

Total                            30,000

28 Jan Sale                   11,250              150.00              1,687,500

30 Jan Sale                  3,750                 150.00              562,500

Inventory Ending                15,000                                                

Feb. 5 Sale                    1,500                150.00               225,000

                                  13,500                                                              

10 Feb Purchase           54,000             87.50                4,725,000

                                      67,500                                                          

16 Feb Sale                27,000              160.00               4,320,000

28 Feb Sale               25,500             160.00                4,080,000

Inventory Ending        15,000                                                        

Mar. 5 Purchase          45,000           89.50               4,027,500

14 Mar Sale                30,000           160.00                 4,800,000

25 Mar Purchase           7,500            90.00               675,000

30 Mar Sale                26,250             160.00              4,200,000

Ending Units              11250                                                            

Ending Inventory FIFO = 1010,625

7,500  units at  $ 90.00 = $  675,000

3750 units at  $ 89.50   = $ 335,625

Total Sales = Sales In Jan + Sales in Feb + Sales In Mar

                      = 1,687,500 +562,500 +4,320,000 + 4,080,000 +4,800,000+4,200,000 = $ 19,650,000

Cost Of Goods Sold= Sales Less Ending Inventory

Cost Of Goods Sold= $ 19,650,000- 1010,625= 18639,375

3. Journal Entries

Account Receivable $ 19,650,000 Dr.

Sales $ 19,650,000 Cr.

Cost Of Goods Sold 18639,375 Dr.

Merchandise Inventory 18639,375 Cr.

4. Ending Inventory FIFO = 1010,625

5. LIFO Ending inventory would be lower as price is increasing.

1. Perpetual Inventory Record of Data:

Date        Transaction     Number of Units    Per Unit      Total

Jan. 1        Inventory          7,500                    $75.00      $562,500

Jan. 10      Purchase       22,500                      85.00       1,912,500

Jan. 28     Sale                -11,250                     150.00                     1,687,500

Jan. 30     Sale                 -3,750                     150.00                      562,500

Feb. 5      Sale                  -1,500                     150.00                      225,000

Feb. 10     Purchase       54,000                       87.50      4,725,000

Feb. 16     Sale              -27,000                     160.00                    4,320,000

Feb. 28    Sale              -25,500                     160.00                    4,080,000

Mar. 5      Purchase       45,000                      89.50      4,027,500

Mar. 14    Sale               -30,000                    160.00                    4,800,000

Mar. 25   Purchase         7,500                      90.00         675,000

Mar. 30   Sale              -26,250                    160.00                    4,200,000

March 31  Inventory   Units          Costs                                 Sales Revenue

Available for Sale    136,500     $11,902,500                         $15,075,000

Journal Entries for each transaction:

Jan. 10 Debit Inventory $1,912,500

Credit Accounts Payable $1,912,500

To record the purchase of 22,500 units at $85.00 each.

Jan. 28 Debit Accounts Receivable $1,687,500

Credit Sale Revenue $1,687,500

To record the sale of 11,250 units at $150 each.

Jan. 28 Debit Cost of Goods Sold $881,250

Credit Inventory$881,250 (7,500 x $75 + 3,750 x $85)

To record the cost of sales of 11,250 units.

Jan. 30 Debit Accounts Receivable $562,500

Credit Sale Revenue $5627,500

To record the sale of 3,750 units at $150 each.

Jan. 30 Debit Cost of Goods Sold $318,750

Credit Inventory$318,750 (3,750 x $85)

To record the cost of sales of 3,750 units

Feb. 5 Debit Accounts Receivable $225,000

Credit Sale Revenue $225,000

To record the sale of 1,500 units at $150 each.

Feb. 5 Debit Cost of Goods Sold $127,500

Credit Inventory$127,500 (1,500 x $85)

To record the cost of sales of 1,500 units

Feb. 10 Debit Inventory $4,725,000

Credit Accounts Payable $4,725,000

To record the purchase of 54,000 units.

Feb. 16 Debit Accounts Receivable $4,320,000

Credit Sales Revenue $4,320,000

To record the sale of 27,000 units.

Feb. 16 Debit Cost of Goods Sold $2,328,750

Credit Inventory$2,328,750 (13,500 x $85 + 13,500 x $87.50)

To record the cost of sales of 27,000 units

Feb. 28 Debit Accounts Receivable $4,080,000

Credit Sales Revenue $4,080,000

To record the sale of 25,500 at $160 each.

Feb. 28 Debit Cost of Goods Sold $2,231,250

Credit Inventory$2,231,250 (25,500 x $87.50)

To record the cost of sales of 25,500 units

Mar. 5 Debit Inventory $4,027,500

Credit Accounts Payable $4,027,500

To record the purchase of 45,000 units at $89.50

Mar. 14 Debit Accounts Receivable $4,800,000

Credit Sales Revenue $4,800,000

To record the sale of 30,000 units at $160 each.

Mar. 14 Debit Cost of Goods Sold $2,655,000

Credit Inventory$2,655,000 (15,000 x $87.50 + 15,000 x $89.50)

To record the cost of sales of 30,000 units

Mar. 25 Debit Inventory $675,000

Credit Accounts Payable $675,000

To record the purchase of 7,500 units.

Mar. 30 Debit Accounts Receivable $4,200,000

Credit Sales Revenue $4,200,000

To record the sale of 26,250 units at $160 each.

Mar. 30 Debit Cost of Goods Sold $2,349,375

Credit Inventory $2,349,375 (26,250 x $89.50)

To record the cost of sales of 26,250 units.

2. Total sales revenue = $15,075,000

Total cost of goods sold for the period = $10,891,875

Journal Entry:

March 31: Debit Accounts Receivable $15,075,000

Credit Sales Revenue $15,075,000

To record the sales for the period.

March 31: Debit Cost of Goods Sold $10,891,875

Credit Inventory $10,891,875

To record the cost of goods sold for the period.

3. The gross profit for the period = $4,183,125 ($15,075,000 - $10,891,875)

4. Ending inventory = $1,010,625

5. The inventory at the end of the period will be lower because the costs of units of the merchandise purchased have been rising.  The cost of goods sold will be based on the higher unit costs while the ending inventory will be based on lower unit costs.

Data Analysis:

Date        Transaction     Number of Units    Per Unit      Total

Jan. 1        Inventory          7,500                    $75.00      $562,500

Jan. 10      Purchase       22,500                      85.00       1,912,500

Jan. 28     Sale                -11,250                     150.00                     1,687,500

Jan. 30     Sale                 -3,750                     150.00                      562,500

Feb. 5      Sale                  -1,500                     150.00                      225,000

Feb. 10     Purchase       54,000                       87.50      4,725,000

Feb. 16     Sale              -27,000                     160.00                    4,320,000

Feb. 28    Sale              -25,500                     160.00                    4,080,000

Mar. 5      Purchase       45,000                      89.50      4,027,500

Mar. 14    Sale               -30,000                    160.00                    4,800,000

Mar. 25   Purchase         7,500                      90.00         675,000

Mar. 30   Sale              -26,250                    160.00                    4,200,000

March 31  Inventory

Available for Sale    136,500     $11,902,500                         $15,075,000                

Units sold                125,250    

Ending inventory =    11,250

Ending Inventory = 11,250 (37,500 - 26,250) units.

Cost of ending inventory:

7,500 units at $90 =    $675,000

3,750 units at $89.50 = 335,625

11,250 units              = $1,010,625

Cost of goods sold:

Cost of goods available for sale = $11,902,500

Ending inventory = $1,010,625

Cost of goods sold = $10,891,875

Total sales revenue = $15,075,000

Total cost of goods sold = $10,891,875

Learn more about last-in, first-out inventory costing method at Learn more about the four inventory costing methods at link and link

all of them make sense but, i would have to say ask someone who has been there/or lives there, and/or read recent newspapers from that city.

hope this !

answermeasured by how well she or he does the job'; /