ESSAY. Write your answer on a separate sheet of paper. 1) Modern Lifestyle Furniture began June with merchandise inventory of 45 sofas that cost a total of $31,500. During the month, Modern purchased and sold merchandise on account as follows: June 7 Purchase 25 sofas @ $750 each 14 Sale 30 sofas @ $1,150 each 18 Purchase 50 sofas @ $775 each 35 sofas @ $1,200 each 27 Sale Using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. (3 POINTS)