Group Project 3 Problem 1 40 Points The Gant Company uses the perpetual Inventory system and the following information is provided: Date Quantity Unit Cost Total Cost 1/1/22 Beg. 6,000 $14.20 $85,200 inventory Februa - Sales 3.500 AoriI - Purchases 5,000 $15.00 $75,000 June Sales 4.000 August 3,400 $15.25 $51,850 Purchases September Sales 3000 Nov. Purchases 1,600 $15.50 $24,800 December Sales 3500 !\" Complete the FIFO perpetual schedule from the work paper provided. Complete the LIFO perpetual Schedule from the work paper provided. Compute the income statement through gross profit assuming the Sales was $330,000 for the year in the attached work paper. 4. Assume that a physical count of the inventory was taken at December and there were only 1,700 units that were available for sale. Assume that the remaining inventory was damaged and unsalable. Record the adjusting entry for inventory shrinkage using both the FIFO and LIFO method. 5. Assume for part 5 that Gant is using the FIFO Method. Is Gant doing a betterjob controlling inventory in 2022 or 2021. In order the determine this you will need to compute the inventory turnover for 2022 and 2021. For 2021, assume that the cost of goods sold was $230,000 and the Inventory as of 1/1/21 was $91,000. (Make sure to take into account the inventory shrinkage in part 4 when applying the FIFO method. 6. A. What are the reasons why the FIFO method best reflects the results of operations? B. What are the reasons why the LIFO method best reflects the results of operations? C. What are the advantages and disadvantages of using the Perpetual Inventory system as contrasted with the periodic system? 9!\" 1. FIFO Perpetual System Purchases Cost of goods sold QTY Unit Cost Inventory on hand Total Cost QTY Unit Cost Total Cost QTY Unit Cost Total Cost #VALUE! #VALUE! #VALUE! - #VALUE! Totals 2. LIFO Perpetual System Purchases Date QTY Cost of goods sold Unit Cost Inventory on hand Total Cost QTY Unit Cost Total Cost QTY Unit Cost Total Cost #VALUE! #VALUE! #VALUE! $ - $ - $- #VALUE! Totals 3. Income Statement through Gross profit Fifo Lifo 4. Inventory Shrinkage - FIFO Journal Entry Date Accounts Debit Credit 4. Inventory Shrinkage - LIFO ournal Entry Date Accounts Debit Credit Inventory Turnover 2021 2022 How are they doing at controlling their inventory in 2022 compared to 2021? 6. A. 6. B. 6. C