Assume a Cross Country Sports outlet store began March 2020 with 49 pairs of running shoes that cost the store \(\$ 35\) each. The sale price of these shoes was \(\$ 70\). During March, the store completed these 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 March. Also compute gross profit for March.
3. What is the cost of the store's March 31 inventory of running shoes?
4. Assume that ending inventory declined by \(\$ 150\). What value would the company report as inventory on the balance sheet? How would it account for this difference?

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Units Unit Cost Unit Sale Price Mar. 2 Sale 17 $35 $70 9 Purchase. 83 37 13 Sale..... 32 35 70 18 Sale 12 37 71 22 Sale 34 37 71 29 Purchase.. 18 39