Exercise 1 During the first quarter of 2024, Clayton Company shows the following transactions for its major inventory item. Date Transaction # bottles Cost (per bottle) Price (per bottle) 1/15/2023 Purchase 100 $ 25 1/31/2023 Sale 150 $ 40 2/25/2023 Purchase 100 $ 26 3/1/2023 Sale 150 $ 42 3/15/2023 Purchase 50 $ 27 Additional information: Clayton had 150 units at a total cost of $3,600 as at January 1, the beginning of its fiscal year 2024. The company uses a perpetual inventory system and the weighted average costing method. Required: (Show detailed calculations and round to two decimal points) 1. Calculate the cost of sales and the ending balance of inventory as at March 31, 2024. [5 marks] 2. Suppose Clayton used a periodic inventory system and the weighted average costing method, instead. What would be the impact on the company's inventory turnover ratio and gross profit margin? Be specific in your answers, and no calculation is required. [4 marks] 3. For this requirement only, suppose Clayton used a perpetual inventory system and the FIFO costing method, instead. How would your answers in requirement 1 change? Be specific in your answers, and no calculation is required. [2 marks] 4. Why might a company opt for the FIFO inventory valuation method during periods of high inflation? Be as specific as possible [4 points]