(Learning Objective 1, 2: Measuring cost of goods sold and ending inventory—

perpetual system) Assume a Championship Sports outlet store began March with 46 pairs of running shoes that cost the store €39 each. The sale price of these shoes was €65. 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 profi t for March.

3. What is the cost of the store’s March 31 inventory of running shoes?