Requirement 3. Compute cost of goods sold and gross profit using the weighted average inventory costing method. (Round weighted average cost per unit to the nearest cent and all other amounts to the nearest dollar.) Begin by computing the cost of goods sold and cost of ending merchandise inventory using the weighted average inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. Purchases Cost of Goods Sold Inventory on Hand Total Unit Total Unit Total Unit Cost Date Quantity Cost Quantity Cost Cost Quantity Cost Cost May 1 23 26 29| | | | Totals Compute gross profit using the weighted average inventory costing method. Gross profit is $ L u sing the weighted-average inventory costing method. Requirement 4. Which method results in the largest gross profit, and why? The V method results in the largest gross profit because during times of V inventory prices, this method will produce the cost of goods sold. May 1 Beginning merchandise inventory 11 Purchase A 23 Sale 16 tires @ $ 10 tires @ $ 12 tires @ $ 14 tires @ $ 18 tires @ $ 65 each 78 each 89 each 80 each 89 each 26 Purchase 29 Sale