On May 1, Blossom Company had 380 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		@		$4.00		May 3		250		@		$7.00
14		610		@		$4.30		16		1,000		@		$7.00
29		400		@		$4.55		18		430		@		$7.50

Calculate the cost of goods sold and ending inventory using FIFO.

Prepare journal entries to record the May 4 purchase and the May 3 and 16 sales.

Calculate gross profit for May.