E6-32B. (Learning Objectives 1, 2: Show how to account for inventory transactions; apply the FIFO cost method) Arrow Corporation's inventory records for a particular development program show the following at March 31: 9 units @ $165 = $1,485 166 13units @ 175 = 2,275 Mar 1 Beginning inventory 5 units @ 830 26 Purchase At March 31, 11 of these units are on hand. Journalize the following for Arrow Corporatiorn under the perpetual system: 1. Total March purchases in one summary entry. All purchases were on credit. 2. Total March sales and cost of goods sold in two summary entries. The selling price was $500 per unit, and all sales were on credit. Assume that Arrow uses the FIFO inventory method 3. Under FIFO, how much gross profit would Arrow earn on these transactions? What is the FIFO cost of Arrow Corporation's ending inventory? E6-33B. (Learning Objective 2: Compare ending inventory and cost of goods sold by four methods) Use the data for Arrow Corporation in E6-32B to answer the following Requirements 1. Compute cost of goods sold and ending inventory using each of the following methods: a. Specific unit cost, with seven $165 units and four $175 units still on hand at the end b. Average cost c. FIFO d. LIFO 2. Which method produces the highest cost of goods sold? Which method produces the lowest cost of goods sold? What causes the difference in cost of goods sold