Show how to account for inventory transactions; apply the FIFO cost method) Donovan, Inc.s inventory records for a particular development program show the following at August 31: Aug 1 Beginning inventory 5 units @ $170 = $ 850 Aug 15 Purchase 7 units @ 170 = 1,190 Aug 26 Purchase 13 units @ 180 = 2,340 At August 31, nine of these programs are on hand. Journalize the following for Donovan: 1. Total August purchases in one summary entry. All purchases were on credit. 2. Total August sales and cost of goods sold in two summary entries. The selling price was $575 per unit, and all sales were on credit. Assume that Donovan uses the FIFO inventory method. 3. Under FIFO, how much gross profit would Donovan earn on these transactions? What is the FIFO cost of Donovan, Inc.s ending inventory?