Question 1 (12 points] Star Inc. employs a perpetual inventory system using FIFO. Star Inc. has the following purchases and sales during the year ended December 31, 2014. Assume all purchases and sales are for cash. Inventory and Purchases Sales Beginning: 400 units @ $38/unit May 15: 200 units January 20: 100 units @ $35/unit July 10: 200 units June 7 200 units @ $34/unit The units have a selling price of $40.00 per unit. a) Calculate the cost of goods available for sale, the number of units available for sale, and the units remaining in ending inventory Cost of Goods available for sale: Units available for sale: Units remaining in ending inventory: c) Prepare journal entries to record (a) the purchase on June 7 and (b) the sale on July 10. Enter the transaction letter as the description when preparing a journal entry. When a transaction requires two separate journal entries, use the same letter for both descriptions. Dates must be entered in the format dd/mmm (ie. 15/Jan).) General Journal Page GJ8 Date Account/Explanation F Debit Credit + - + -1 b) Please fill in the table by calculating the dollar value of cost of goods sold and ending inventory as well as the gross profit earned by Star Inc. Cost of Goods Sold: Ending Inventory Gross Profit: This schedule is provided for calculation purposes only and is not marked. Purchases/Transportation-In/ Cost of Goods Sold/ (Purchase Returns/Discounts) (Returns to Inventory) Tuu Balance in Inventory TC TILA LINE This schedule is provided for calculation purposes only and is not marked. Purchases/Transportation-In/ Cost of Goods Sold/ (Purchase Returns/Discounts) (Returns to Inventory) Date Units Cost/Unit Total $ Units Cost/Unit Total $ January 1 January 20 Balance in Inventory Units Cost/Unit Total $ May 15 June 7 July 10