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 May 3 300 @ $7.00 14 700 $4.40 16 1,000 $7.00 29 500 @ $4.75 18 400 @ $7.50 Calculate the cost of goods sold and ending inventory using FIFO. FIFO Cost of goods sold $ Ending inventory $ Prepare journal entries to record the May 4 purchase and the May 3 and 16 sales. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit May 3 (To record sales on account.) May 3 (To record cost of goods sold.) May 4 (To record purchase on account.) May 16 (To record sales on account.) May 16 (To record cost of goods sold.) Calculate gross profit for May. Gross profit $