Inventory Valuation under FIFO Method:

Company XYZ has the following inventory transactions during May:

• May 1: Beginning Inventory - 100 units at $10 per unit
• May 10: Purchase - 200 units at $12 per unit
• May 20: Purchase - 150 units at $15 per unit
• May 25: Sale - 250 units

Requirements:

1. Calculate the cost of goods sold (COGS) for May using the FIFO method.
2. Determine the value of ending inventory as of May 31.
3. Prepare the journal entry to record the sale on May 25.