Chapter 6 Hand-out Assignment Question 1 Gabbins Company uses the perpetual inventory system and the FIFO cost formula. Purchases Sales Selling Units Unit Cost Units Price 1 Beginning inventory 100 $50 3 Purchase 60 $60 Sales 70 $100 Purchase 1 200 $70 Sales 80 $110 19 Sales $110 25 Sales $110 30 Purchase I $75 Instructions a) Using the inventory and sales data above, calculate the value assigned to cost of goods sold in March and to the ending inventory at March 31. b) Prepare the journal entries to record the sales on March 4 and March 19. All sales are made on credit. 50