Q5. Assume a Watercrest Sports outlet store began October 2016 with 47 pairs of water skis that cost the store $38 each. The sale price of these water skis was $67. During October, the store completed these inventory transactions: Units Unit Cost Unit Sale Price Oct. 5 19 S 38 $ 67 8 Sale Purchase Sale 40 10 80 $ 28 $ 10 S 67 15 Sale 38 S 40 S 40 S 68 20 Sale 68 30 $ 24 $ 25 Purchase 42 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