Problem 8-5 Martinez Limited stocks a variety of sports equipment for sale to institutions. The following stock record card for basketballs was taken from the records at the December 31, 2020 year end: Invoice Number balance Units Received Unit Invoice Cost Terms 94 $20 Date Jan. 1 15 Mar. 15 Gross Invoice Amount $1,880 1,200 960 60 20 10624 11437 60 16 June 20 21332 Net 30 Net 30 1/5, net 30 1/10, net 20 30 1/10, net 30 1/10, net 30 85 15 1,275 Sept. 12 27644 78 12 936 Nov. 24 31269 72 11 792 Totals 449 $7,043 A physical inventory on December 31, 2020, reveals that 100 basketballs are in stock. The bookkeeper informs you that all the discounts were taken. Assume that Martinez Limited uses a periodic inventory system and records purchases at their invoice price less discounts. During 2020, the average sales price per basketball was $22.25. X1 Your answer is incorrect. Try again. Calculate the December 31, 2020 inventory using the FIFO formula. (Round answer to 2 decimal places, e.g. 52.75.) 1128 Ending inventory LINK TO TEXT LINK TO TEXT Calculate the December 31, 2020 inventory using the weighted average cost formula. (Round weighted average cost per unit and the final answer to 2 decimal places, e.g. 52.75.) 1569 Ending inventory $U LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Prepare income statements for the year ended December 31, 2020, as far as the "gross profit" line under each of the FIFO and weighted average methods, and calculate the gross profit rate for each. (Round Gross profit rate to 1 decimal place, e.g. 5.2% and all other answers to 2 decimal places, e.g. 52.75.) FIFO Sales 7765.25 Cost of Goods Sold Beginning Inventory ) 1880 Purchases 5163 Less Ending Inventory 1128 5915 Gross Profit/ (Loss) + 1850.25 5915 Gross Profit / (Loss) A 1850.25 Gross profit rate 23.8 % Weighted Average Sales 7765.25 $ Cost of Goods Sold Beginning Inventory 1880 Purchases 5163 Less Ending Inventory 1569 5474 Gross Profit / (Loss) | 2291.25 Gross profit rate 29.5 %