1. Modern Lifestyle Furniture began June with merchandise inventory of 45 sofas that cost a total of $31,500. During the month, Modern purchased and sold merchandise on account as follows:

June7	Purchash	25 sofas @ $750 each
14	Sale	30 sofas @ $1,150 each
18	Purchase	50 sofas @ $775 each
27	Sale	35 sofas @ $1,200 each

Using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit.