Beginning inventory, purchases and sales data for tennis rackets are as follows: Apr. 03 Inventory 20 units $15.00 Apr. 11 Purchase 18 units $19.00 Apr. 14 Sale 10 units Apr. 21 Purchase 13 units $20.00 Apr. 25 Sale 15 units Assuming the business maintains a perpetual inventory system, calculate the cost of merchandise sold and ending inventory under First-in, first-out. Select the correct answer:

1-cost of merchandise sold $395.00 ending inventory $902.00

2-cost of merchandise sold $902.00 ending inventory $507.00

3-cost of merchandise sold $395.00 ending inventory $507.00

4-cost of merchandise sold $507.00 ending inventory $395.00

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