Assume a Tiger Sports outlet store began October 2020 with 40 pairs of water skis that cost the store $32 each. The sale price of these water skis was $64. During October, the store completed these inventory transactions: (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 October. Also compute gross profit for October. 3. What is the cost of the store's October 31 inventory of water skis? Assume that ending inventory declined by $225. 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? 4. Requirement 1. Which cost method coes the store use? Explain how you arrived at your answer. Tiger Sports uses This is apparent fre V, which came from the This is how FIFO. ry. For example, the October 13 sale shows unit cost of works LIFO. Requirement 2.D Weighted average cost. The cost of goods sur la sold for October. Also compute gross profit for October 0 Inventory Transactions The gross profit for October is $ Units Unit Cost Unit Sale Price Requirement 3. What is the cost of the store's October 31 inventory of water skis? Oct. 2 Sale 13 $ 32 $ 84 The cost of the company's inventory at October 31 is : iss 9 Purchase 85 34 13 Sale 27 32 64 Requirement 4. Assume that ending inventory ceclined by $225. What value would the company report as inventor for this difference 18 Sale 5 34 65 The company would report ending inventory at $because the reg 22 Sale 31 34 65 Account for this difference by preparing the necessary ioumal entry. (Record debits first, then credits. Explanatid 29 Purchase 21 36 Choose from any list or enter any number in the input fields and then continue to the next question. Print Done This is apparent from the flow of costs out of inventory. For example, the October 13 sale shows unit cost of which came from the This is how works. r. Also compute gross profit for October. FIFO, and only FIFO, LIFO, and only LIFO, Weighted-Average cost, and only Weighted-Average cost, Requirement 3. What is the cost of the store's October 31 inventory of water skis? The cost of the company's inventory at October 31 is $ Requirement 4. Assume that ending inventory declined by $225. 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 $ because the requires inventory to be reported in the financial statements at 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 Choose from any list or enter any number in the input fields and then continue to the next question. The cost of goods sold is $ The gross profit for October is $ Requirement 3. What is the cost of the store's October 31 inventory of water skis? The cost of the company's inventory at October 31 is $ Requirement 4. Assume that ending inventory declined by $225. 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 $ because the requires inventory to be reported in the financial statements at Account for this difference by preparing the necessary journal entry. (Record debits first, then credits. Explanations are not required.) the First-in, first-out value. Journal Entry the Weighted-average value. Date Accounts Debit Credit whichever is lower of cost or net realizable value. Choose from any list or enter any number in the input fields and then continue to the next