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 2,600 $58.00 $150,800 10 Purchase 7,200 66.00 475,200 28 Sale 3,950 116.00 458,200 30 Sale 1,300 116.00 150,800 Feb. 5 Sale 500 116.00 58,000 10 Purchase 17,500 68.00 1,190,000 16 Sale 9,200 121.00 1,113,200 28 Sale 8,000 121.00 968,000 Mar. 5 Purchase 14,400 69.60 1,002,240 14 Sale 10,100 121.00 1,222,100 25 Purchase 3,300 70.00 231,000 30 Sale 7,900 121.00 955,900 CHART OF ACCOUNTS Midnight Supplies General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Office Equipment 192 Accumulated Depreciation-Office Equipment 193 Store Equipment 194 Accumulated Depreciation-Store Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 222 Interest Payable 231 Salaries Payable 241 Sales Tax Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Insurance Expense 534 Office Supplies Expense 535 Rent Expense 536 Repairs Expense 537 Selling Expenses 538 Store Supplies Expense 561 Depreciation Expense-Office Equipment 562 Depreciation Expense-Store Equipment 590 Miscellaneous Expense 710 Interest Expense I need all of the blanks in the photos filled in and the answers to not be cut off.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 2PEA: Beginning inventory, purchases, and sales for Item ProX2 are as follows: Assuming a perpetual...

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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	2,600	$58.00	$150,800
	10	Purchase	7,200	66.00	475,200
	28	Sale	3,950	116.00	458,200
	30	Sale	1,300	116.00	150,800
Feb.	5	Sale	500	116.00	58,000
	10	Purchase	17,500	68.00	1,190,000
	16	Sale	9,200	121.00	1,113,200
	28	Sale	8,000	121.00	968,000
Mar.	5	Purchase	14,400	69.60	1,002,240
	14	Sale	10,100	121.00	1,222,100
	25	Purchase	3,300	70.00	231,000
	30	Sale	7,900	121.00	955,900

CHART OF ACCOUNTS

Midnight Supplies

General Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
181	Land
191	Office Equipment
192	Accumulated Depreciation-Office Equipment
193	Store Equipment
194	Accumulated Depreciation-Store Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
222	Interest Payable
231	Salaries Payable
241	Sales Tax Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing
312	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
515	Credit Card Expense
516	Cash Short and Over
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Insurance Expense
534	Office Supplies Expense
535	Rent Expense
536	Repairs Expense
537	Selling Expenses
538	Store Supplies Expense
561	Depreciation Expense-Office Equipment
562	Depreciation Expense-Store Equipment
590	Miscellaneous Expense
710	Interest Expense

I need all of the blanks in the photos filled in and the answers to not be cut off.

FIFO
1 Record the inventory, purchasss, 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.
Date
Purchases
Cost of Merchandise Sold
inventory
Quantity
Unit Cost
Total Cost
Quantity
Unit Cost
Total Cost
Quantity
Unit Cost
Total Cost
Jan 1
10
7,200
66.00
475,200
10
28
28
30
1,300
Feb. 5
500
10
17,500
68.00
1,190,000
10
16
16
28
8,000
Mar. 5
14,400
69.60
1,002,240
14
14
25
3,300
70.00
231,000
25
30
7,900
30
31
Balances

Journal
2. Determine the total sales and the total cost of merchandise sold for the period Journalire the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account and date your joumal entry March 31. Refer to the chart of
accounts for the oxact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a joumal page is used for debit or credit entries CNOW journals will automaticaly indent a credit entry when a credit amount entered
PAGE 10
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
DEBIT
CREDIT
ASSETS LIABILITIIRQUITY
Ha 31
Final Questions
2.
a 3. Determine the gross profit from sales for the period.
Is
4. Determine the ending inventory cost as of March 31.
45. Based upon the preceding data, would you expect the inventory using the lastin, first-out method to be higher or lower?
o Lower
Higher

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