Aloha Surf wholesales surfboards, swim wear and surfing merchandise. Following is the April 2019 activity related to its inventory of Kokua SPF-50 water resistant sun screen: Sales Purchases April 1 Balance on hand 50@ $47.50 April 3 80 units 20@ $47.50 60@ $48.00 100@ $48.00 15@ $23.08 80@ $23.40 4 23 13 70@ $23.60 50@ $24.00 21 29 Required: Explain how Aloha Surf should manage the physical flow of its sunscreen inventory. 1. Assume Aloha uses a LIFO periodic inventory system. The cost of the opening inventory is $18 per unit, and a physical count shows 65 units on hand at April 30. a. Prepare the journal entries to record the April 13 purchase and the April 23 sale Assume all purchases and sales are on account. b. Calculate cost of goods sold for April 2019, and ending inventory at April 30, 2019 2. 3. Assume Aloha uses a FIFO perpetual inventory system and the cost of the opening inventory is $23 per unit. a. Prepare the journal entries to record the April 21 purchase and the April 27 sale. Assume all purchases and sales are on account b. Calculate cost of goods sold for April 2019, and ending inventory at April 30, 2019. 4. Would you recommend that Aloha use FIFO or LIFO? Why? 5. Calculate the LIFO reserve at March 31 and April 30, 2019. Caiinrs 27