Show Me HowCalculatorPrint ItemLIFO Perpetual InventoryThe beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:Date TransactionNumberof UnitsPer UnitTotalJan. 1 Inventory7,500 $75.00 $562,500 10 Purchase22,500 85.00 1,912,500 28 Sale11,250 150.00 1,687,500 30 Sale3,750 150.00 562,500 Feb. 5 Sale1,500 150.00 225,000 10 Purchase54,000 87.50 4,725,000 16 Sale27,000 160.00 4,320,000 28 Sale25,500 160.00 4,080,000 Mar. 5 Purchase45,000 89.50 4,027,500 14 Sale30,000 160.00 4,800,000 25 Purchase7,500 90.00 675,000 30 Sale26,250 160.00 4,200,000 Required:1.  Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Round unit cost to two decimal places, if necessary.Midnight SuppliesSchedule of Cost of Goods SoldLIFO MethodFor the Three Months Ended March 31 PurchasesCost of Goods SoldInventoryDateQuantityUnit CostTotal CostQuantityUnit CostTotal CostQuantityUnit CostTotal CostJan. 1       $$Jan. 10 $$         Jan. 28    $$      Jan. 30            Feb. 5            Feb. 10               Feb. 16               Feb. 28               Mar. 5                  Mar. 14                  Mar. 25                     Mar. 30                           Mar. 31Balances    $  $2.  Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.Total sales$Total cost of goods sold$Gross profit$3.  Determine the ending inventory cost as of March 31.$

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Asked Nov 30, 2019
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LIFO Perpetual Inventory

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  

Required:

1.  Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Round unit cost to two decimal places, if necessary.

Midnight Supplies
Schedule of Cost of Goods Sold
LIFO Method
For the Three Months Ended March 31
  Purchases Cost of Goods Sold Inventory
Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost
Jan. 1               $ $
Jan. 10   $ $            
     
Jan. 28         $ $      
     
Jan. 30                  
     
Feb. 5                  
     
Feb. 10                  
     
     
Feb. 16                  
     
     
Feb. 28                  
     
     
Mar. 5                  
     
     
     
Mar. 14                  
     
     
     
Mar. 25                  
     
     
     
     
Mar. 30                  
           
           
           
Mar. 31 Balances         $     $

2.  Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.

Total sales $
Total cost of goods sold $
Gross profit $

3.  Determine the ending inventory cost as of March 31.
$

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Expert Answer

Step 1

1.

Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. 

Midnight Supplies
Schedule of Cost of Goods Sold
LIFO Mothod
For the Thee Months Ended March 31
Inventary Ralance
Units
Cost of Gonds told
Purrhases
Date
Units
Per unit
Units
Per unit
Amount
Amount
Per unit
Amount
S162,500
anI
7,500
$75
22.500
S562,500
lan 10
Sa5
$1,912,500
7,500
22.500
S05
$1,912,500
11.250
S956,250
Jan 28
S05
7,500
$75
562,500
$556,250
11,250
S85
3,750
S85
7,500
s562,300
Jan 30
$318,750
$75
2,500
S37500
S85
1,500
Feb 5
S85
$127,500
3,500
S75
$562,500
S510,000
6.О00
Sa5
Feb 10
54,000
$87.50
$4,725,000
$562,300
$510,000
7,500
$75
5,000
505
54.000
$37.50
$4.725,000
27,000 $87.50
$2,362,500
Fob 16
7,500
S562,500
$510,000
5,000
S05
S87.50
27,000
$2.362,500
S562,500
$510,000
Fob 28
25 500
$8750
$2,231,250
$75
7,500
5,000
S85
$87.50
1,500
bsc'TETS
45.000
S89.50
$4,027,300
S562,500
Mar 5
7,500
$75
5,000
S85
$510,000
S87.50
S131,250
1,500
S83.50
45,000
$4,027,500
30,000 89.50
$2.605,000
$562,500
Mar 14
7,500
$75
S510,000
G000
S85
1,500 87.50-
S39.50
$131,250
$1,342,00
15,000
Mar 25
7,500
S90
S075,000
7,500
$562,500
$510,000
$131,250
5,000
S85
S87.50
1,500
$89.50
15,000
$1,342,500
S673,000
7,500
$90
7500
$562,500
$318,750
S90
$75
Mar 30
S075,000
7,500
s89.50
87.50
$1.342,500
$131,250
15,000
3,750
605
1,500
2,250
S85
$191,250
$11,021,250
$a31,250
Mar 31
11,250
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Midnight Supplies Schedule of Cost of Goods Sold LIFO Mothod For the Thee Months Ended March 31 Inventary Ralance Units Cost of Gonds told Purrhases Date Units Per unit Units Per unit Amount Amount Per unit Amount S162,500 anI 7,500 $75 22.500 S562,500 lan 10 Sa5 $1,912,500 7,500 22.500 S05 $1,912,500 11.250 S956,250 Jan 28 S05 7,500 $75 562,500 $556,250 11,250 S85 3,750 S85 7,500 s562,300 Jan 30 $318,750 $75 2,500 S37500 S85 1,500 Feb 5 S85 $127,500 3,500 S75 $562,500 S510,000 6.О00 Sa5 Feb 10 54,000 $87.50 $4,725,000 $562,300 $510,000 7,500 $75 5,000 505 54.000 $37.50 $4.725,000 27,000 $87.50 $2,362,500 Fob 16 7,500 S562,500 $510,000 5,000 S05 S87.50 27,000 $2.362,500 S562,500 $510,000 Fob 28 25 500 $8750 $2,231,250 $75 7,500 5,000 S85 $87.50 1,500 bsc'TETS 45.000 S89.50 $4,027,300 S562,500 Mar 5 7,500 $75 5,000 S85 $510,000 S87.50 S131,250 1,500 S83.50 45,000 $4,027,500 30,000 89.50 $2.605,000 $562,500 Mar 14 7,500 $75 S510,000 G000 S85 1,500 87.50- S39.50 $131,250 $1,342,00 15,000 Mar 25 7,500 S90 S075,000 7,500 $562,500 $510,000 $131,250 5,000 S85 S87.50 1,500 $89.50 15,000 $1,342,500 S673,000 7,500 $90 7500 $562,500 $318,750 S90 $75 Mar 30 S075,000 7,500 s89.50 87.50 $1.342,500 $131,250 15,000 3,750 605 1,500 2,250 S85 $191,250 $11,021,250 $a31,250 Mar 31 11,250

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Step 2

2.

Determine the total sales, the total cost of goods sold,...

Particulars
Amount
Sales
Jan 28 (11,250 $150)
Jan 30 (3,750 $150)
Feb 5 (1,500 $150)
Feb 16 (27,000* $160)
Feb 28 (25,500 $160)
Mar 14 (30,000* $160)
Mar 30 (26,250* $160)
$1,687,500
$562,500
$225,000
$4,320,000
$4,080,000
$4,800,000
$4,200,000
Total sales
$19,875,000
Less: Cost of goods sold $11,021,250
Gross profit
$8,853,750
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Particulars Amount Sales Jan 28 (11,250 $150) Jan 30 (3,750 $150) Feb 5 (1,500 $150) Feb 16 (27,000* $160) Feb 28 (25,500 $160) Mar 14 (30,000* $160) Mar 30 (26,250* $160) $1,687,500 $562,500 $225,000 $4,320,000 $4,080,000 $4,800,000 $4,200,000 Total sales $19,875,000 Less: Cost of goods sold $11,021,250 Gross profit $8,853,750

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