Assume a Swoosh Sports outlet store began March 2020 with 46 pairs of water skis that cost the store $39 each. The sale price of these water skis was $62. During March, 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 March. Also compute gross profit for March 3. What is the cost of the store's March 31 inventory of water skis? 4. Assume that ending inventory declined by $235. 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 1. Which cost method does the store use? Explain how you arrived at your answer. Swoosh Sports uses FIFO. This is apparent from the flow of costs out of inventory. For example, the March 13 sale shows unit cost of $39 which came from the beginning inventory. This is how FIFO, and only FIFO, works Requirement 2. Determine the store's cost of goods sold for March. Also compute gross profit for March The cost of goods sold is $ 5232 The gross profit for March is $ 446 Requirement 3. What is the cost of the store's March 31 inventory of water skis? The cost of the company's inventory at March 31 is $2676 Requirement 4. Assume that ending inventory declined by $235. 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? The company would report ending inventory at $ 2441 because the requires inventory to be reported in the financial statements at the First-in, first-out value. Account for this difference by preparing the necessary journal entry. (Record debits first, then credits. Explanations are not required.) Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 4. Assume that ending inventory declined by $235. 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? The company would report ending inventory at $ 2441 because the requires inventory to be reported in the financial statements at the First-in, first-out value. Account for this difference by preparing the necessary journal entry. (Record debits first, then credits. Explanations are not required.) Journal Entry Date Accounts Debit Credit Cost of Goods Sold Inventory i Inventory Transactions x Units Unit Cost Unit Sale Price Mar. 2 Sale 12 $ 39 $ 62 9 Purchase 81 41 13 Sale 34 39 62 18 Sale oo 8 41 63 35 41 63 22 Sale 29 Purchase 26 43 Print Done