Cranwell Company's inventory records for a particular development program show the following at May 31: (Click the icon to view the accounting records.)

At May 31,10 of these programs are on hand.

Requirements

	1. Journalize the total May purchases in one summary entry, under the perpetual system. All purchases were on credit.
	2. Journalize the total May sales and cost of goods sold in two summary entries, under the perpetual system. The selling price was $550 per unit, and all sales were on credit. Assume that Cranwell Company, uses the FIFO inventory method.
	3. Under FIFO, how much gross profit would Cranwell CompanyCranwell Company, earn on these transactions? What is the FIFO cost of Cranwell CompanyCranwell Company's ending inventory?

Account records

Jan 1 Beginning invetory 6 units @ $650 = $900

Jan 15 Purchase invetory 4 units @ $151 = $604

Jan 26 Purchase invetory 14 units @ $160 = $2240