3. Assume that our records include the following two FIFO inventory cost pools:

	Units	Cost/Unit
BOQ	4,200	$160
Purchase #1	5,000	$200
Total	9,200

At the beginning of the quarter (BOQ), we report 4,200 units on hand at a cost of $160 per unit. During the quarter, we sell 6,000 units at $420/unit for cash.

Assume that we expect to increase our quantities of inventories on hand by year-end by the purchase of inventories at a cost of $220.

Required:

1. Compute the gross profit we should recognize on the sales during the quarter.
2. Prepare the required journal entries to record the sales.