Fit universe began May with merchandise inventory of 65 crates of vitamins that cost a total of 3,835. During the month ,fit Universe purchasedand sold merchandise on account as follows:

Requirement 1. Prepare a perpetual inventory record, using the FIFO inventory costing method,and determine the company's cost of goods sold,ending merchandise inventory,and gross profit.

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 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. Transactions: May 5 purchase , 145 crates@ 80each ,13 sale 160 crates@ 160 each, 18 purchase 170crates @ 90each ,26 sale 175 crates @112 each.