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Homework answers / question archive / The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows: Date TransactionNumber of UnitsPer UnitTotalJan

The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows: Date TransactionNumber of UnitsPer UnitTotalJan

Finance

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

Date TransactionNumber

of 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 Supplies

Schedule of Cost of Goods Sold

LIFO Method

For the Three Months Ended March 31 PurchasesCost of Goods SoldInventoryDateQuantityUnit CostTotal CostQuantityUnit CostTotal CostQuantityUnit CostTotal CostJan. 1      

   Mar. 31Balances    

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

Total sales$fill in the blank 144

Total cost of goods sold$fill in the blank 145

Gross profit$fill in the blank 146

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

$fill in the blank 147

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STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD:
  Receipts Cost of Goods Sold Balance
Date Units Rate Amount Units Rate Amount Units Rate Amount
Jan-01             7500 75 562500
10-Jan 22500 85 1912500       7500 75 562500
              22500 85 1912500
28-Jan       11250 85 956250 7500 75 562500
              11250 85 956250
30-Jan       3750 85 318750 7500 75 562500
              7500 85 637500
05-Feb       1500 85 127500 7500 75 562500
              6000 85 510000
10-Feb 54000 87.5 4725000       7500 75 562500
              6000 85 510000
              54000 87.5 4725000
16-Feb       27000 87.5 2362500 7500 75 562500
              6000 85 510000
              27000 87.5 2362500
28-Feb       25500 87.5 2231250 7500 75 562500
              6000 85 510000
              1500 87.5 131250
05-Mar 45000 89.5 4027500       7500 75 562500
              6000 85 510000
              1500 87.5 131250
              45000 89.5 4027500
14-Mar       30000 89.5 2685000 7500 75 562500
              6000 85 510000
              1500 87.5 131250
              15000 89.5 1342500
25-Mar 7500 90 675000       7500 75 562500
              6000 85 510000
              1500 87.5 131250
              15000 89.5 1342500
              7500 90 675000
30-Mar       7500 90 675000      
        15000 89.5 1342500      
        1500 87.5 131250 7500 75 562500
        2250 85 191250 3750 85 318750
TOTAL 129000   11340000 125250   11021250 11250   881250
                   
Total sales (11250*150 + 3750*150 + 1500*150 + 27000*160 + 25500*160 + 30000*160 + 26250*160)                19875000  
Total cost of goods sold               11021250  
Gross Profit  (Total Sales - Cost of Goods Sold)             8853750  
Ending Inventory                881250