Please use the tables provided
FIFO perpetual inventory
Instructions
Chart of Accounts
FIFO
General Journal
Final Questions
Instructions
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 9,000 $60.00 $540,000
10 Purchase 21,000 70.00 1,470,000
28 Sale 10,250 140.00 1,435,000
30 Sale 5,750 140.00 805,000
Feb. 5 Sale 3,500 140.00 490,000
10 Purchase 39,500 75.00 2,962,500
16 Sale 15,000 150.00 2,250,000
28 Sale 10,000 150.00 1,500,000
Mar. 5 Purchase 25,000 82.00 2,050,000
14 Sale 30,000 150.00 4,500,000
25 Purchase 10,000 88.40 884,000
30 Sale 19,000 150.00 2,850,000
Required:
1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in 
Exhibit 3
, using the first-in, first-out method.
2. Determine the total sales and the total cost of goods sold for the period. Journalize summary entries for the sales and corresponding cost of goods sold for the period. Assume that all sales were on account and date your journal entry March 31.
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?
CHART OF ACCOUNTS
Midnight Supplies
General Ledger
ASSETS
110 Cash
111 Petty Cash
120 Accounts Receivable
131 Notes Receivable
132 Interest Receivable
141 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 Common Stock
311 Retained Earnings
312 Dividends
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods 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

FIFO

  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. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

Date Purchases Cost of goods Sold Inventory
Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost
Jan. 1
10
10
28
28
30
Feb. 5
10
10
16
16
28
Mar. 5
5
14
14
25
25
30
30
31 Balances

General Journal

  1. Determine the total sales and the total cost of goods sold for the period. Journalize summary entries for the sales and corresponding cost of goods sold for the period. Assume that all sales were on account and date your journal entry March 31.

General Journal Instructions
PAGE 10
JOURNAL
ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY
1  
2  
3  
4  

Final Questions

  1. Determine the gross profit from sales for the period.
  2. Determine the ending inventory cost as of March 31.
  3. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out methodto be higher or lower?

Higher
Lower
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Question Content Area
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 9,000 $60.00 $540,000
Jan. 10 Purchase 21,000 70.00 1,470,000
Jan. 28 Sale 10,250 140.00 1,435,000
Jan. 30 Sale 5,750 140.00 805,000
Feb. 5 Sale 3,500 140.00 490,000
Feb. 10 Purchase 39,500 75.00 2,962,500
Feb. 16 Sale 15,000 150.00 2,250,000
Feb. 28 Sale 10,000 150.00 1,500,000
Mar. 5 Purchase 25,000 82.00 2,050,000
Mar. 14 Sale 30,000 150.00 4,500,000
Mar. 25 Purchase 10,000 88.40 884,000
Mar. 30 Sale 19,000 150.00 2,850,000

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.

 
 
 
 

Date Purchases
Quantity		 Purchases
Unit Cost		 Purchases
Total Cost		 Cost of
Goods Sold
Quantity		 Cost of
Goods Sold
Unit Cost		 Cost of
Goods Sold
Total Cost		 Inventory
Quantity		 Inventory
Unit Cost		 Inventory
Total Cost
Jan. 1             fill in the blank 1 $fill in the blank 2 $fill in the blank 3
Jan. 10 fill in the blank 4 $fill in the blank 5 $fill in the blank 6       fill in the blank 7 fill in the blank 8 fill in the blank 9
Jan. 10             fill in the blank 10 fill in the blank 11 fill in the blank 12
Jan. 28       fill in the blank 13 $fill in the blank 14 $fill in the blank 15 fill in the blank 16 fill in the blank 17 fill in the blank 18
Jan. 28             fill in the blank 19 fill in the blank 20 fill in the blank 21
Jan. 30       fill in the blank 22 fill in the blank 23 fill in the blank 24 fill in the blank 25 fill in the blank 26 fill in the blank 27
Jan. 30             fill in the blank 28 fill in the blank 29 fill in the blank 30
Feb. 5       fill in the blank 31 fill in the blank 32 fill in the blank 33 fill in the blank 34 fill in the blank 35 fill in the blank 36
Feb. 5             fill in the blank 37 fill in the blank 38 fill in the blank 39
Feb. 10 fill in the blank 40 fill in the blank 41 fill in the blank 42       fill in the blank 43 fill in the blank 44 fill in the blank 45
Feb. 10             fill in the blank 46 fill in the blank 47 fill in the blank 48
Feb. 10             fill in the blank 49 fill in the blank 50 fill in the blank 51
Feb. 16       fill in the blank 52 fill in the blank 53 fill in the blank 54 fill in the blank 55 fill in the blank 56 fill in the blank 57
Feb. 16             fill in the blank 58 fill in the blank 59 fill in the blank 60
Feb. 16             fill in the blank 61 fill in the blank 62 fill in the blank 63
Feb. 28       fill in the blank 64 fill in the blank 65 fill in the blank 66 fill in the blank 67 fill in the blank 68 fill in the blank 69
Feb. 28             fill in the blank 70 fill in the blank 71 fill in the blank 72
Feb. 28             fill in the blank 73 fill in the blank 74 fill in the blank 75
Mar. 5 fill in the blank 76 fill in the blank 77 fill in the blank 78       fill in the blank 79 fill in the blank 80 fill in the blank 81
Mar. 5             fill in the blank 82 fill in the blank 83 fill in the blank 84
Mar. 5             fill in the blank 85 fill in the blank 86 fill in the blank 87
Mar. 5             fill in the blank 88 fill in the blank 89 fill in the blank 90
Mar. 14       fill in the blank 91 fill in the blank 92 fill in the blank 93 fill in the blank 94 fill in the blank 95 fill in the blank 96
Mar. 14       fill in the blank 97 fill in the blank 98 fill in the blank 99 fill in the blank 100 fill in the blank 101 fill in the blank 102
Mar. 14       fill in the blank 103 fill in the blank 104 fill in the blank 105
Mar. 25 fill in the blank 106 fill in the blank 107 fill in the blank 108       fill in the blank 109 fill in the blank 110 fill in the blank 111
Mar. 25             fill in the blank 112 fill in the blank 113 fill in the blank 114
Mar. 25             fill in the blank 115 fill in the blank 116 fill in the blank 117
Mar. 25             fill in the blank 118 fill in the blank 119 fill in the blank 120
Mar. 30       fill in the blank 121 fill in the blank 122 fill in the blank 123 fill in the blank 124 fill in the blank 125 fill in the blank 126
Mar. 30       fill in the blank 127 fill in the blank 128 fill in the blank 129 fill in the blank 130 fill in the blank 131 fill in the blank 132
Mar. 30       fill in the blank 133 fill in the blank 134 fill in the blank 135
Mar. 31 Balances         $fill in the blank 136     $fill in the blank 137
  1.  Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.
Line Item Description Amount
Total sales $fill in the blank 138
Total cost of goods sold $fill in the blank 139
Gross profit $fill in the blank 140
  1.  Determine the ending inventory cost as of March 31.
    fill in the blank 1 of 1$

 
 

  1. Periodic inventory by three methods

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 9,000 $60.00 $540,000
Jan. 10 Purchase 21,000 70.00 1,470,000
Jan. 28 Sale 10,250 140.00 1,435,000
Jan. 30 Sale 5,750 140.00 805,000
Feb. 5 Sale 3,500 140.00 490,000
Feb. 10 Purchase 39,500 75.00 2,962,500
Feb. 16 Sale 15,000 150.00 2,250,000
Feb. 28 Sale 10,000 150.00 1,500,000
Mar. 5 Purchase 25,000 82.00 2,050,000
Mar. 14 Sale 30,000 150.00 4,500,000
Mar. 25 Purchase 10,000 88.40 884,000
Mar. 30 Sale 19,000 150.00 2,850,000
  1. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the first-in, first-out method and the periodic inventory system.
    Inventory, March 31 fill in the blank 1 of 2$
    Cost of goods sold fill in the blank 2 of 2$
  2. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system.
    Inventory, March 31 fill in the blank 1 of 2$
    Cost of goods sold fill in the blank 2 of 2$
  3. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the weighted average cost method and the periodic inventory system. Round the weighted average unit cost to the nearest cent.
    Inventory, March 31 fill in the blank 1 of 2$
    Cost of goods sold fill in the blank 2 of 2$
  4. Compare the gross profit and the March 31 inventories, using the following column headings. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Line Item Description FIFO LIFO Weighted Average
Sales $fill in the blank 7 $fill in the blank 8 $fill in the blank 9
Cost of goods sold fill in the blank 10 fill in the blank 11 fill in the blank 12
Gross profit $fill in the blank 13 $fill in the blank 14 $fill in the blank 15
Inventory, March 31 $fill in the blank 16 $fill in the blank 17 $fill in the blank 18

 

FIFO Inventory
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