Question 2 - Accounting for inventory using the perpetual inventory system-FIFO, LIFO and average cost Athletic Universe began January with inventory of 65 crates of vitamins that cost a total of $3 835. During the month, Athletic Universe purchased and sold merchandise on account as follows: Requirements 1. Prepare a perpetual inventory record using the FIFO inventory costing method, and determine the cost of sales, ending inventory and gross profit. 2. Prepare a perpetual inventory record using the LIFO inventory costing method, and determine the cost of sales, ending inventory and gross profit. 3. Prepare a perpetual inventory record using the average-cost inventory costing method, and determine the cost of sales, ending inventory and gross profit. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.) 4. If the business wanted to pay the least amount of income tax possible, which method would it choose? Response: Requirement 1 Using FIFO, cost of goods sold is $26,685, ending retail inventory is $4,050, and gross profit is $7,925. Requirement 2 Using LIFO, cost of goods sold is $28,080, ending retail inventory is $2,655, and gross profit is $6,530. Pernetual inventorv record: LIFO (b) Calculated in Requirement 1. (c) Calculated in Requirement 1. Requirement 3 Using average cost, cost of goods sold is $26,854, ending retail inventory is $3,881, and gross profit is $7,756. Perdetual inventorv record: Averace cost (d) Calculated in Requirement 1. CR mftr Purchatie 2