P6-71B. (Learning Objectives 1, 2: Show how to account for inventory in a perpetual system using the average-costing method) Super Value purchases inventory in crates of merchandise; each crate of inventory is a unit. The fiscal year of Super Value ends each January 31. Assume you are dealing with a single Super Value store in Madison, Wisconsin. The Madison store began the year with an inventory of 14,000 units that cost a total of $742,000. During the year, the store purchased merchandise on account as follows: July (31,000 units at $55).... $1,705,000 3,009,000 Cash payments on account totaled $8,351,000. During fiscal year 2016, the store sold 149,000 units of merchandise for $15,272,500, of which $5,200,000 was for cash and the balance was on account. Super Value uses the average-cost method for inventories. Operating expenses for the year were $3,250,000. Super Value paid 70% in cash and accrued the rest as accrued liabilities. The store accrued income tax at the rate of 35% Requirements 1. Make summary journal entries to record the store's transactions for the year ended June 30 2016. Super Value uses a perpetual inventory system. Round average cost per unit to two decimal places and round all other amounts to the nearest dollar 2. Prepare a T-account to show the activity in the Inventory account. 3. Prepare the store's income statement for the year ended January 31, 2016. Show totals for gross profit, income before tax, and net income