May 5	Purchase	130	crates @	$76	each
13	Sale	140	crates @	$102	each
18	Purchase	150	crates @	$83	each
26	Sale	160	crates @	$104	each

Exercise World began May with merchandise inventory of 70 crates of vitamins that cost a total of $4,550. During the month, Exercise World purchased and 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 each 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. (Enter the oldest inventory layers first.)

	Purchases			Cost of Goods Sold			Inventory on Hand
		Unit	Total		Unit	Total		Unit	Total
Date	Quantity	Cost	Cost	Quantity	Cost	Cost	Quantity	Cost	Cost
May 1
5
13
18
26
Totals

Determine the company's gross profit using the FIFO inventory costing method.

Gross profit is $

using the FIFO inventory costing method.