I need help with an explanation of how to do this problem? I am not sure how to do the calculations.

The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:

Date Transaction Number of Units Per Unit Total

Apr. 3 Inventory 78 $375 $29,250

8 Purchase 156 450 70,200

11 Sale 104 1,250 130,000

30 Sale 65 1,250 81,250

8-May Purchase 130 500 65,000

10 Sale 78 1,250 97,500

19 Sale 39 1,250 48,750

28 Purchase 130 550 71,500

5-Jun Sale 78 1,315 102,570

16 Sale 104 1,315 136,760

21 Purchase 234 600 140,400

28 Sale 117 1,315 153,855

Required:

1.Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

Required:

1.Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

2.Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account.

Record sale

Record cost

3.Determine the gross profit from sales for the period.

$

4.Determine the ending inventory cost as of June 30.

$

5.Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?