Can someone please help me identify the portions I have highlighted in yellow and explain the process? Thanks!

More Info x Dec. 1 Beginning merchandise inventory 8 Sale 14 Purchase 21 Sale 14 units @ $ 11 each 9 units @ $ 26 each 17 units @ $ 15 each 13 units @ $ 26 each Print Done Assume that J R Toys store bought and sold a line of dolls during December as follows: (Click the icon to view the transactions.) JR Toys uses the perpetual inventory system Read the requirements. Requirement 1. Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the FIFO inventory costing method. Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) Purchases Cost of Goods Sold Unit Total Unit Total Inventory on Hand Unit Total Quantity Cost Cost 14 $ 11 $ 154 Date Quantity Cost Cost Quantity Cost Cost Dec. 1 Dec. 8 9 $ 11 $ 99 5 $ 11 $ 55 Dec. 141 17 $ 15$ 255 5 $ 11 $ 55 17 $ 15 $ 255 Dec. 21 5$ 11 $ 55 15 $ 15 $ 255 Totals 17