Requirement $1.$ Which cost method does the store use? Explain how you arrived at your answer.

Swoosh Sports uses

This is apparent from the flow of costs out of inventory. For example, the May $13$ sale shows unit cost of $$34,$ which came from the

This is how

IFO, and only FIFO,

works.

Requirement $2.$ Determine the store's cost of goods sold for May. Also compute gross profit for May.

The cost of goods sold is $

The gross profit for May is :

Requirement $3.$ What is the cost of the store's May $31$ inventory of water skis?

The cost of the company's inventory at May $31$ is $$.$ account for this difference?

The company would report ending inventory at $$.$ because the

requires inventory to be reported in the financial statements at