Assume a Bear Sports outlet atore began January 2014 with 42 pairs of running shoes that the store $36 each. The sale price of these shoes was $68. During January, the store completed these inventry transactions;

		Units	Unit Cost	Unit Sale Price
Jan 3	Sale	15	$36	$68
Jan 8	Purchase	82	38
Jan 11	Sale	27	36	68
Jan 19	Sale	6	38	70
Jan 24	Sale	29	38	70
Jan 30	Purchase	25	40

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 January. Also compute gross profit for January.

3, What is the cost of the store's January 31 inventory of running shoes?