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 July. Also compute gross profit for July.
3.	What is the cost of the store's July 31 inventory of water skis?
4.	Assume that ending inventory declined by $215. What value would the company report as inventory on the balance sheet? Include in your answer why it chose that value. How would it account for this difference

Assume a Tiger Sports outlet store began July 2020 with 44 pairs of water skis that cost the store $38 each. The sale price of these water skis was $68. During July, the store completed these inventory transactions: E: (Click the icon to view the 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 July. Also compute gross profit for July. 3. What is the cost of the store's July 31 inventory of water skis? 4. Assume that ending inventory declined by $215. What value would the company report as inventory on the balance sheet? Include in your answer why it chose that value. How would it account for this difference? Requirement 2. Determine the store's cost of goods sold for July. Also compute gross profit for July. The cost of goods sold is $ 3512 The gross profit for July is $ 2654 Requirement 3. What is the cost of the store's July 31 inventory of water skis? The cost of the company's inventory at July 31 is $ Requirement 4. Assume that ending inventory declined by $215. What value would the company report as inventory on the balance sheet? Include in your answer why it chose that value. How would it account for this difference? X i Inventory Transactions Units Unit Cost Unit Sale Price 68 Jul. 17 $ 38 $ 77 40 27 38 2 Sale 9 Purchase 13 Sale 18 Sale 22 Sale 29 Purchase 15 40 68 69 69 31 40 22 42 Print Done