The beginning inventory of merchandise at Keats Office Supplies and data on purchases and sales for a three-month period ending May 31, 2014, are as follows:

Date		Transaction	Number of Units		Per Unit		Total
March 1		Inventory	54		$525		$28,350
10		Purchase	108		630		68,040
28		Sale	72		1,750		126,000
30		Sale	45		1,750		78,750
April 5		Purchase	90		700		63,000
10		Sale	54		1,750		94,500
16		Sale	27		1,750		47,250
28		Purchase	90		770		69,300
May 5		Sale	54		1,840		99,360
14		Sale	72		1,840		132,480
25		Purchase	162		840		136,080
30		Sale	81		1,840		149,040

Required:

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.

Keats Office Supplies Schedule of Cost of Merchandise Sold FIFO Method For the three months ended May 31, 2014
	Purchases			Cost of Merchandise Sold			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Mar. 1								$	$
Mar. 10		$	$
Mar. 28					$	$
Mar. 30
Apr. 5
Apr. 10
Apr. 16
Apr. 28
May 5
May 14
May 25
May 30
May 31	Balances					$			$

2. Determine the total sales and the total cost of merchandise sold for the period. Journalize the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account.

Record sale	SelectAccounts ReceivableCashFees EarnedMerchandise InventorySalesItem 93
	SelectAccounts ReceivableCashFees EarnedMerchandise InventorySalesItem 95
Record cost	SelectAccounts ReceivableCashCost of Merchandise SoldSalesMerchandise InventoryItem 97
	SelectAccounts PayableAccounts ReceivableCashCost of Merchandise SoldMerchandise InventoryItem 99

3. Determine the gross profit from sales for the period. $

4. Determine the ending inventory cost as of May 31, 2014. $