The beginning inventory of merchandise at Waldo Co. and data on purchases and sales for a three-month period are as follows:

Instructions
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.
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.
3. Determine the gross profit from sales for the period.
4. Determine the ending inventorycost.

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Number Per Date Transaction of Units Unit Total March 3 Inventory 60 $1,500 $ 90,000 Purchase 120 1,800 216,000 Sale 80 400,000 11 5,000 250,000 30 Sale 50 5,000 100 2,000 April 8 Purchase 200,000 10 5,000 300,000 Sale 60 Sale 30 5,000 19 150,000 Purchase 28 100 2,200 220,000 May 5 315,000 Sale 60 5,250 420,000 16 Sale 80 5,250 Purchase 21 180 2,400 432,000 Sale 28 90 5,250 472,500