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.

Instructions: Answer this question either by typing in the box below or writing on a sheet of paper, scanning the page as a PDF file and uploading your solution to Moodle.

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 9 and 21. All sales were on account.

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. Units Sales Unit Price Purchases Units Unit Cost May 1 Beginning inventory 85 $70 4 Purchase 140 $75 9 Sale 11 Purchase 90 $80 21 Sale 100 $130 120 $130 Instructions: Answer this question either by typing in the box below or writing on a sheet of paper, scanning the page as a PDF file and uploading your solution to Moodle. 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 9 and 21. All sales were on account