You are the manager of a new retail cart at the mall. Your business uses the perpetual inventory system.

You need to decide which inventory cost flow assumption method your new business will use: FIFO or LIFO. Using this method, prepare the journal entries, compute the sales revenue, cost of goods sold and ending inventory for your first month of operations (March).

Data provided:

Activity	Units	Purchase Price (per unit)	Sale Price (per unit)
Purchase, March 1	25	$13
Purchase, March 2	15	$13.50
Sale, March 3	30		$25
Purchase, March 10	5	$14.25
Sale, March 15	12		$25
Purchase, March 18	20	$14.40
Sale, March 22	10		$25

All purchases are made with cash. All sales are cash sales.

1. Which inventory cost flow assumption will your business use? _________________

2. Required Journal Entries

Date	Accounts	Debit	Credit
March 1
March 2
March 3
March 10
March 15
March 18
March 22

3. What is your total sales revenue for March?

4. What is your total cost of goods sold for March?

5. What is your total dollar value of ending inventory at March 31?