Please complete in Excel (Financial Accounting)

E6-29B

(Learning Objectives 1, 2: Show how to account for inventory transactions; apply the FIFO cost method)  Donovan, Inc.’s inventory records for a particular development program show the following at August 31:

Aug  1	Beginning inventory	5 units @ $170	=	$  850
Aug 15	Purchase	7 units @  170	=	1,190
Aug 26	Purchase	13 units @  180	=	2,340

At August 31, nine of these programs are on hand. Journalize the following for Donovan:

· 1. Total August purchases in one summary entry. All purchases were on credit.

· 2. Total August sales and cost of goods sold in two summary entries. The selling price was $575 per unit, and all sales were on credit. Assume that Donovan uses the FIFO inventory method.

· 3. Under FIFO, how much gross profit would Donovan earn on these transactions? What is the FIFO cost of Donovan, Inc.’s ending inventory?