FIFO Perpetual Inventory The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Number of Units Date Transaction Per Unit Total Apr. 3 Inventory 66 $375 $24,750 8 Purchase 132 450 59,400 11 Sale 88 1,250 110,000 30 Sale 55 1,250 68,750 May 8 Purchase 110 500 55,000 10 Sale 66 1,250 82,500 19 Sale 33 1,250 41,250 28 Purchase 110 550 60,500 June 5 Sale 66 1,315 86,790 16 Sale 88 1,315 115,720 21 Purchase 198 600 118,800 28 Sale 99 1,315 130,185 Required: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column. Rhodes Co. Schedule of Cost of Merchandise Sold FIFO Method For the three-months ended June 30 Purchases Cost of Merchandise Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Apr. 3 66 $ 3757 $ 24,750 66 375 24,750 7 Apr. 8 132 $ 450 $ 59,400 132 450 59,400 Apr. 11 Apr. 30 May 8 110 500 55,000 May 10 May 19 May 28 110 550 60,500 June 5 June 16 June 21 198 600 118,800 June 28 June 30 Balances 2. Determine the total sales and the total cost of merchandise sold for the period. Journalize the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account. If an amount box does not require an entry, leave it blank. Description Post. Ref. Debit Credit Record sale Accounts Receivable Sales Record cost Cost of Merchandise Sold Merchandise Inventory 3. Determine the gross profit from sales for the period. 4. Determine the ending inventory cost as of June 30. $ 5. Based upon the preceding data, would you expect the inventory using the last-in, first-out method to be higher or lower? Lower