Kahn Distribution Limited (KDL) purchases inventory items for resale. At the beginning of 2009, Kahn had no inventory on hand. During 2009, Kahn had the following transactions:

KDL sold 5,600 units of inventory during the year at $50 per unit, and received cash.
KDL determines that there were 2,000 remaining units of inventory and specifically identifies that 1,900 were those purchased in the fourth quarter and 100 were purchased in the third quarter. What are the revenue and expense associated with these transactions during 2009 based on specific identification of inventory items as sold or remaining in inventory?

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Inventory Purchases First quarter Second quarter Third quarter Fourth quarter Total 2,000 1,500 2,200 1,900 7,600 units at $40 per unit units at $41 per unit units at $43 per unit units at $45 per unit units at a total cost of $321,600