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Assume that Toys Galore store purchased and sold a line of dolls during December as follows: View the transactions. Toys Galore uses the perpetual inventory system. Requirement 1. Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the FIFO inventory costing method. 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 Unit Cost Cost of Goods Sold Inventory on Hand Unit Quantity Cost x Total Cost Requirements Date Quantity Dec. 1 Dec. 8 Dec. 14 Dec. 21 Totals Quantity Unit Cost Total Cost Total Cost 1. 2. 3. 4. 5. Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the FIFO inventory costing method. Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the LIFO inventory costing method. Which method results in a higher cost of goods sold? Which method results in a higher cost of ending merchandise inventory? Which method results in a higher gross profit? Transactions Dec. 1 Beginning merchandise inventory 8 Sale 14 Purchase 21 Sale 14 9 15 13 units @ $ units @ $ units @ $ units @ $ x 10 each 23 each 14 each 23 each