Cranwell Company's inventory records for a particular development program show the following at May 31:
May 1 Beginning inventoryl ........................... 6 units® $150 = $ 900
15 Purchase ............................................... 4 units @ 151 = $ 604
26 Purchase ............................................. 14 units® 160 = $2,240
At May 31, 10 of these units are on hand. Journalize the following for Cranwell Company under the perpetual system:
Requirments
1. Total May purchases in one summary entry. All purchases were on credit.
2. Total May sales and cost of goods sold in two summary entries. The selling price was $550 per unit, and all sales were on credit. Assume that Cranwell uses the FIFO inventory method.
3. Under FIFO, how much gross profit would Cranwell earn on these transactions? What is the FIFO cost of Cranwell Company's ending inventory?