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 Date Transaction of Units Per Unit Total Apr. 3 Inventory 60 $450 $27,000 Purchase 120 540 64,800 11 Sale 80 1,500 120,000 8 30 Sale 50 1,500 75,000 May 8 Purchase 100 600 60,000 10 Sale 60 1,500 90,000 19 Sale 30 1,500 28 Purchase 100 660 45,000 66,000 94,500 June 5 Sale 60 1,575 16 Sale 80 1,575 126,000 21 Purchase 180 720 129,600 28 Sale 90 1,575 141,750 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 60 $ $ 60 Apr. 8 120 120 60 Apr. 11 100 20 Apr. 30 50 50 50 May 8 100 100 50 May 10 90 10 May 19 30 0 60 60 May 28 100 100 100 June 5 60 100 June 16 80 20 20 June 21 180 20 June 28 110 70 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 Post. Ref. Debit Credit Description 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