A retailer uses the perpetual inventory and First in, First Out method to value its inventory and cost of goods sold. The business recorded the following inventory transactions during the month of May.

a) Use the FIFO (first in, first out) cost method to calculate the cost of goods sold and ending inventory for May. Calculate inventory and cost of goods sold to the nearest dollar ($1).

b) Prepare the journal entries to record sales transactions on May 8 and 20. All sales were on account.

Sales Unit Price Units Purchases Units Unit Cost May 1 Beginning inventory 90 $45 4 Purchase 155 $50 8 Sale 11 Purchase 60 $55 20 Sale 110 $125 135 $125