Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from Kayaking, rain, fishing or even diving up to 100 feet won't damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of the year. All watches are sold for $300 each. Jl. 17 Purchased 50 watches for $7,500 ($150 per watch) on account. lul. 31 Sold 40 watches for $12,000 cash. Aug. 12 Purchased 40 watches for S6,400 (S160 per watch) cash. Aug. 22 Sold 30 watches for $9,000 on account Oct. 27 Purchased 80 watches for $13,600 ($170 per watch) cash Nov. 20 Sold 90 watches for $27,000 cash, Dec 4 Purchased 100 watches for $18,000 ($180 per watch) cash Dec 8 Sold 40 watches for $12,000 on account Required: 1. Calculate sales revenue, cost of goods sold, and ending inventory as of year end, assuming Suzie uses FIFO to account for inventory Then Calculate sales revenue, cost of goods sold and ending inventory as of year end, assuming Suzie usos Weighted Average Unit Cost 2. Calculate Gross Profit for both valuation methods Based on the Gross Profit calculation, which inventory valuation method do you recommend Great Adventures uses? Unit Price Total Cost Units Unit Price Total Revenue Total Inventory Available for Sale: Date Units 7/17 8/12 10/27 12/4 Sales: Date 7/31 8/22 11/20 12/8 S Cost of Inventory Cost of Goods Sold #of units Unit cost #units sold Unit Cost S S Requirement 1 - FIFO Date Transaction 7/17 Purchase iny Sell purchased in 8/12 Purchase in Sell purchased in 10/27 Purchase Inv Sell purchased in 12/4 Purchase triv Soll purchased in S s Total Inventory Sold: 0 $0 # of units Unit Cost Total Value 12/31 Ending Inventory Requirement 1 - Weighted Average Cost Date Units Unit Price 7/17 8/12 10/27 12/4 Total Cost $ $ $ $ $ 0 COGS using weighted average cost - Requirement 2-Gross Profit Calculate Gross Profit using FIFO Sales Revenue COGS Gross Profit SO Calculate Gross Profit using Weighted Average Unit Cost Sales Revenue COGS Gross Profit $0 Which method do you recommend for Great Adventures and why