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.

Purchases Sales

Unit Unit cost Unit. Unit Price

May 1 Beginning Inventory 75 65

4 Purchase 150. 70

7 Sale 105 120

11 Purchase 100 75

19 Sale 110. 120

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 7 and 19. All sales were on account.