Requirement 1. Determine the amount that would be reported in ending merchandise inventory on May

May 15 using the FIFO inventory costing method.

Enter the transactions in chronologicalorder, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetualrecord, calculate the quantity and total cost of merchandise inventorypurchased, sold, and on hand at the end of the period.(Enter all amounts to the nearestcent, $X.XX. Enter the oldest inventory layersfirst.)

May 2

Purchased 10 gallons@ $ 1.75 each

6 Purchased 2 gallons@ $ 2.05 each

8 Sold 4 gallons of milk to a customer

13 Purchased 2 gallons@ $ 2.30 each

14 Sold 4 gallons of milk to a customer