8 00 ebook Port Problem 17.6A (Algo) Applying the correct method of evaluating Inventory. LO 17-1, 17-2 Paulson Sailing Company sells boats as a supplement to its boat storage operations. Data for its boat sales for August 20x1 are given below. The beginning inventory on August 1 was composed of the following items: 28 Starfish 30 Perch 24 Sea King 38 Holiday 20 Lake King Cost Retail $42,000 $54,000 62,000 82,000 24,500 28,500 44,500 57,000 26,500 33,000 0 References Sales during the month were the 30' Holiday and the 20' Lake King, sold at the retail values shown on August 1. Required: 1. Based on the above data, what is the best method of valuing the ending inventory? 2. & 3. Determine the value of Paulson Sailing Company's cost of goods sold and ending inventory of items that were brought over from the beginning inventory using this method. Assume that the company's retail values had not changed. Analyze: What is the estimated gross profit on sales for August? Complete this question by entering your answers in the tabs below. Req 2 and 3 Analyze Based on the above data, what is the best method of valuing the ending inventory? The best method of valuing the ending inventory is Req 2 and 3>