E6-28B (Learning Objectives 1, 2: Accounting for inventory transactions under FIFO costing) Accounting records for Rockford Corporation yield the following data for the year ended December 31, 20X6: Inventory, December 31, 20X38... € 8,000 Purchsses of invertory (on account). 49,000 Sales of inyentory—76% on account; 24% for cash (cost $40,000). 74,000 Inventory at FIFO, December 31, 20X6 awe 17,000 I Requirements 1. Joumalize Rockford’s inventory transactions for the year under the perpetual systera. 2. Report ending inventory, sales, cost of goods sold, and gross profit on the appropriate financial statement. F6-29B (Learning Objectives 2, 3: Analyzing inventory transactions under FIFO costing) Ron’s, Inc.'s inventory records for a particular development program show the following at May 31 Tonits @ €160 = €1,120 Gunits@ €160 = 960 Uunis @ €170 = 1,870 ‘May ‘1 Begianing inventory 4s ‘At May 31, 10 of these programs are on hand. Joumalize for Ron's: 1. Total May purchases in one summary entry. All purchases were on credit. 2. Total May sales and cast of goods sald in two summary entries. The selling price wes £625 per unit and all sales were on credit, Assume that Ron's uses the FIFO inventory method and the sale took place on May 28 3. Under FIFO, how much gross profit would Ron’s earn on these transactions? What is the FIFO cost of Ron's, Inc.'s ending inventory?