Number Per Unit $ 75.00 Date Transaction of Units Total Jan. 1 Inventory 7,500 $ 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

Question

FIFO perpetual inventory
The beginning inventory at Midnight Supplies and data on purchases
and sales for a three-month period ending March 31, are as attached:

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.
3. Determine the gross profit from sales for the period.

Number
Per
Unit
$ 75.00
Date
Transaction
of Units
Total
Jan. 1 Inventory
7,500
$ 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
Expand
Transcribed Image Text

Number Per Unit $ 75.00 Date Transaction of Units Total Jan. 1 Inventory 7,500 $ 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

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