P6A-7A. (Computing cost of goods sold and gross profit on sales-periodic system) Assume a Watercrest outlet store began July 20X6 with 50 units of inventory that cost $16 each. The sale price of these units was $70. During July, the store completed the following inventory transactions: Jul 3 8 11 19 24 30 31 Sale Purchase...... Sale Sale Sale .......... Purchase... Sale Units 18 80 32 4 36 21 5 Unit Cost $18 19 18 19 19 20 19 Unit Sale Price $70 71 70 72 72 72 72 Requirements 1. Determine the store's cost of goods sold for July under the periodic inventory system. Assume the FIFO method. 2. Compute gross profit for July. P6A-8A. (Recording transactions in the periodic system; reporting inventory items in the financial statements) Accounting records for Decadent Desserts, Inc., yield the following data for the year ended December 31, 20X6 (amounts in thousands): Inventory, December 31, 20Xs. Purchases of inventory (on account).. Sales of inventory-70% on account: 30% for cash... Inventory at the lower of FIFO cost or NRV, December 31, 20X6 $ 580 2,240 3,600 700 Inventory and Merchandising Operations 387 Requirements 1. Journalize Decadent Desserts' inventory transactions for the year under the periodic sys- tem. Show all amounts in thousands. 2. Report ending inventory, sales, cost of goods sold, and gross profit on the appropriate fi- nancial statement amounts in thousands). Show the computation of cost of goods sold