transactions: (Click the icon to view the inventory transactions.) 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 May. Also compute gross profit for May. 3. What is the cost of the store's May 31 inventory of water skis? difference? view the inventory transactions.) Inventory Transactions 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 which came from the This is how FFO,andonlyFIFC 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 account for this difference? The company would report ending inventory at $ because the requires inventory to be reported in the financial statements at