The following details were extracted from the records of Seema Company for a specific product on November 30 of the current year: On December 21 of the current year, Seema sold 200 units to a customer at $18 per unit. Assume that the company uses a perpetual inventory system and that its fiscal year ends on December 31 of the current year. Required: 1. Which inventory costing method does Seema use? Explain. 2. Prepare the journal entries to record the purchase transaction on August 20 and the sale transaction on December 21, assuming that both are cash transactions. 3. Compute the inventory turnover ratio during the current year, and briefly explain what the amount means. 4. Assume that the demand for this product slowed down during December, and its net realizable value dropped to $10.50 per unit at December 31. Seema reports its ending inventory at the LC\&NRV. Prepare the journal entry that should be recorded at December 31 of the current year. 5. Compute the cost of sales for the current year, assuming for this part only that Seema uses the weighted-average cost method