Athletic Word began May with merchandise inventory of 65 cretes or vitamins that cost total of $3.835 During the month, Athletic World purchased and sold merchandise on account as follows Click the icon to view the transactions.) Read the cours Total Requirement 1. Prepare a perpetual invertory record, using the FIFO inventory cesting method, and determine the company's cost of gouck cold, erding merchandise inventory, and grove proit. Begin by computing the cost of good cod and cost of encirg merchandise inventary using the FIFO inventory costing method. Enter the transactions in chronological order, calculatirg new inventary on hand balancee after each transaction. Once al of the transactions have been entered into the perpetual record, calculate the quantity and total costat marchandise inventory purchased, sold and on hand at the end of the penod. (Enter the oldest inventory layers first Purchases Cost of Goods Sold Inventory on Hand Total Unit Total Unit i Requirements Date Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost i Data Table May 11 S 5 | 1. Frapere a perpetual invertory record, using the FIFO entory costing melod, and delamine the company soul of goods sold, ending 1 merchandise inventory, and press profit May 5 Purchase 145 crates $0 och 13 1 2 Prepere a perpetual inventary record, using the LIFO inventory casting method, and determine the coman's cost of goods sold ending May 13 Sale 160 rates D 3103 cach merchandise inventory, and grea profit May 10 Purchase 170 crates $50 coch 18 3. Prepare a perpetual inventory record, using the weighted-average memory May 26 Sale 15 $1 5 :"20.5 G 15 cach costing method, and determine the company's cost of goods sold, ending merchandise inventary, and gross pront Round weighted-average cost per 26 unit to the nearest cant and al other emounts to the nearest coller! Print Done If the business wanted to pay the 1998 amount of income taxes possible which metod would chowa? Totals Print Dona Determine the company's gross pront using the FIFO inventory costing method Gross profit is using the FIFO inventory coeling method. Requirement 2. Prepare a perpetual inventory record, using the LIFO inventory oosting method, and determine the company's cost of goods sold, encing merchandise inventory, and gross pront. Begin by computing the cost of goods sold and cost of encing merchandise inventory using the LIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balance after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the querility and total cost of merchandise inclory purchazed, ecle, and on and at the end of the period. (Enter the oldest inventory layers firet.) Purchases Cost of Goods Sold Inventory on Hund Unit Unit Total Unit Quantity Cost Cost Quantity Cost Cost Cost May 11 Toral Total Quantity 5 13 10 II Enter any number in the edit fields and then continue to the next question. Requirement 3. Prepare a perpetual inventory record, using the weighted-average inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. Begin by computing the cost of goods sold and cost of ending merchandise inventory using the weighted-average inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been enter into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.) Purchases Cost of Goods Sold Inventory on Hand - X Unit Requirements Total Unit Total Unit Total Date Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost i Data Table May 1 1. 5 13 May 5 Purchase 145 crates @ $80 each 2. 18 May 13 Sale 160 crates @ $108 each 26 Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. Prepare a perpetual inventory record, using the weighted average inventory costing method, and determine the company's of goods sold, ending merchandise inventory, and gross profit. (Round weighted average cost per unit to the nearest cent and all other amounts to the nearest dollar.) If the business wanted to pay the least amount of income taxes possible, which method would it choose? May 18 Purchase 3. 170 crates @ $90 each 175 crates @ $116 each Totals May 26 Sale Determine the company's gross profit using the weighted average inventory costing method. 4. Print Done Gross profit is using the weighted average inventory costing method. Requirement 4. If the business wanted to pay the least amount of income taxes possible, which method would it choose? Print Done If the business wanted to pay the least amount of income taxes possible, they would choose Lake Air Carpels booke hon the foluwing dala B Click the icon to view the income statements In Aarty 2017, auditors found that the ending marchandise inwentory for 2023 was understated by S7 pod and that the ending marchandise inventory for 2025 We owerstated by $8.000 Tha ending marchandise Invertery at December 31, 2024, was cores Read the requirements, 2025 2024 2023 Requirements Ending Merchandise Ending Merchandise Inventory Overstated Inventory Understated by $8,000 Correct by $7,000 1. Prepare corrected income statements for the three years. 2. Scale wieder auch year's reincome before your currectiones Net Salas Havana understated or owerstead and indicate the amount of the understatement or Coelof Goods Sold Overtalement 3. Curroute the inventory turnover and days edes in inventory using the Beginning Merchandise Inventory corrected income statement for the three years. Round all numbers to to dacima Plus: Net Cost of Inventory Purchased Cost of Goods Available for Sale LARS: Ending Marchandise Irwantory Print Done Cost of Goods Sold Gross Profit Operating Expenses Data Tables Net Income Requirement 2. State whether asch year's net income-before your corrections- understated or overstated, and indicate the amount of the understa Ynor: Friar to correction not incoma was 2025 $ 200,000 2024 S 186.000 2023 S Nat Sul Revenue 178,000 2025 2024 3 42,000 3 22.000 135,000 $ 29,000 106,000 2023 94000 135,000 Requirement 3. Campute the inventory turnover end day sales in inventory using the corrested income statement for the three years. (Round all num Eclect the locks and crter the amounts to compute inventory turnover for each year. (Hound your answers to two decimal places Xxx Cost of Goods Sold: Beginning Merchandise Inventory Plus: Net Cost of Inventory Purchased Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sald Gross Profit Operating Expenses 157,000 33.000 138,000 29,000 22,000 113,000 107.000 Inventory tumower times | times timee 124,000 82,000 57.000 2025 55 000 28.000 59,000 33,000 20124 2023 $ 25,000 29,000 S 36,000 Net Income Print Donc Now select the labels and enter the amounts to compute days' sales in inventory for each year. (Enter al amounts to two decimal places, X.XX.) Daye' sales in invertory 21255 days 2024 daye 20123 days