tory Costing nal Instructions a. Should Carrie's Car Emporium use specific identification or one of the two cost formulas (FIFO or weighted average) instead? Explain. b. Calculate ending inventory and cost of goods sold using specific identification. c. Prepare the journal entry to record the December 22 cash sale. E6.4 (LO 2) AP On May 1, Black Bear Company had 400 units of inventory on hand, at a cost of $4.00 each. The company uses a perpetual inventory system. All purchases and sales are on account. A record of inventory transactions for the month of May for the company is as follows: Purchases Sales May 4 1,300 @ $4.10 300 @ $7.00 14 700 @ $4.40 16 1,000 @ $7.00 500 @ $4.75 400 @ $7.50 Instructions . Calculate the cost of goods sold and ending inventory using FIEO repare journal entries to record the Maya purchase and the May 3 and 16 sales c. Calculate gross profit for May. May 3 18