E6-4 Apply perpetual FIFO, record journal entries, and calculate gross profit. (LO 2) AP On May 1, Black Bear Company had 400 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 41,300 S4.10May 3 300 $7.00 14 700 @ $4.40 29 500 @ S4.75 161,000 @ 7.00 18 400@ 7.50 Instructions Calculate the cost of goods sold and ending inventory using FIFO Prepare journal entries to record the May 4 purchase and the May 3 and 16 sales