(Learning Objectives 2, 3: Analyzing inventory transactions under FIFO costing)

Ron’s, Inc.’s inventory records for a particular development program show the following at May 31:

At May 31, 10 of these programs are on hand. Journalize for Ron’s:

1. Total May purchases in one summary entry. All purchases were on credit.

2. Total May sales and cost of goods sold in two summary entries. The selling price was

€625 per unit and all sales were on credit. Assume that Ron’s uses the FIFO inventory method and the sale took place on May 28.

3. Under FIFO, how much gross profi t would Ron’s earn on these transactions? What is the FIFO cost of Ron’s, Inc.’s ending inventory?