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

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

At December 31, nine of these programs are on hand. Journalize for Ken’s:

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

2. Total December sales and cost of goods sold in two summary entries. The selling price was $550 per unit, and all sales were on credit. Assume that Ken’s uses the FIFO inventory method and the sale took place on December 28.

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