The beginning inventory at Matt Meyer Office Supplies and data on purchases and sales for a two-month period are as follows:

Instructions
1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, on page 310, using the FIFO method.
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.
3. Determine the gross profit from sales for the period.
4. Determine the ending inventory cost.
5. Record the entry necessary when the inventory count is $3,500 on February 28.

Number Per Transaction of Units Unit Date Total Jan. 1 Inventory 10 Purchase 28 Sale 30 Sale 75 200 100 110 20 120 $20 21 40 40 $1,500 4,200 4,000 4,400 880 2,640 Feb. 5 Sale 10 Purchase