P6-70B. (Learning Objective 1, 2: Measuring cost of goods sold and ending inventory—

perpetual system) Assume a Championship Sports outlet store began March with 48 pairs of running shoes that cost the store $38 each. The sale price of these shoes was $66. During March the store completed these inventory transactions:

Requirements 1. The preceding data are taken from the store’s perpetual inventory records. Which cost method does the store use? Explain how you arrived at your answer.
2. Determine the store’s cost of goods sold for March. Also compute gross profit for March.
3. What is the cost of the store’s March 31 inventory of running shoes?

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Units Unit Cost Unit Sale Price Mar 3 Sale 18 $38 $66 8 Purchase... 77 39 11 Sale 30 38 66 19 Sale 12 39 69 24 Sale 37 39 69 30 Purchase...... 17 40