b). Prepare journal entries to record the May 4 purchase and the May 3 and 16 sales.

c).

Calculate gross profit for May.

On May 1, Pharoah Company had 450 units of inventory on hand, at a cost of $4.00 each. The company uses a perpetual inventory system. All purchases and sales are on account. A record of inventory transactions for the month of May for the company is as follows: Purchases Sales May 4 14 29 1,500 @ 740 @ 499 @ $4.00 $4.30 $4.75 May 3 16 18 320 1,000 630 @ @ @ $7.00 7.00 7.50 Calculate the cost of goods sold and ending inventory using FIFO. (Round answers to 0 decimal places, e.g. 5,275.)