mal E6.4 (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 4 1,300 @ $4.10 mune May 3 300 @ $7.00 D o m 14 T700 @ $4.40 16 31 ,000 @ $7.00 29 500 @ $4. 75 1 8 400 @ $7.50 Instructions a. Calculate the cost of goods sold and ending inventory using FIFO. b. Prepare journal entries to record the May 4 purchase and the May 3 and 16 sales. c. Calculate gross profit for May