CC7-1 Accounting for Changing Inventory Costs [LO7-3, LO7.5] In Octobec, Nicole of Nicole's Getaway Spa (NGS) eliminated all existing inventory of cosmetic items. The trouble of ordering and trecking each product line had exceeded the profits earned. In December, a suppller asked her to sell a prepackaged spa kit. Feelling she could manage a single product line. Nicole agreed. NGS would moke monthly purchases from the supplier at a cost thot included production costs and a transportation charge. The spa would use a perpetual irventory system to keep track of its new inventory. On December 31, NGS purchased to units at a total cost of $8.00 per unit. NGS purchased 30 more units of $10.00 in February, but. returned 5 defective units to the suppliet in March, NGS purchased 15 units at $12.00 per unit, in May, 50 units were purchased at $12.00 per unit; however, NGS took advantage of a 2.00/10, n/30 discount from the suppler. In June, NGS sold 50 units at a selting pelce of $11.50 per unit and 35 units at $9,50 per unit. Required: 1. State whether the transpontation cont included in each purchose should be recorded as a cost of the inventory of immediately expensed. Inventory cost Immediately expensed 2. Compute the Cost of Goods Avalipble for Sale, Cost of Goods Sold, and Cost of Ending linventory using the first-in, first-out (FiFO) method, (Do not round intermediate calculations. Round final answers to the nearest dollar amount.) 3-a. Calculate the Inventory turnover ratio, using the inventory on hand at December 31 as the beginning inventory. (Do not round Intermedlate calculations. Round your answer to 1 decimal place.) 3-b. The supplier reported that the typical inventory turnover ratio was 79. How does NGS's ratio compare