Martinez Company's ending inventory includes the following items. Product Helmets Bats Shoes Uniforms Units Cost per Unit 37 $ 59 30 77 51 96 55 41 Market per Unit $ 55 83 100 41 Compute the lower of cost or market for ending inventory applied separately to each product. Per Unit Total Inventory Items Units Cost Market Cost Market LCM Applied to Items Helmets 37 $ 59 $ 55 Bats 30 77 83 Shoes 51 96 100 Uniforms 55 41 41 0 $ 0 Exercise 5-12 Analysis of inventory errors LO A2 Vibrant Company had $1,050,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased merchandise costing $575,000 in each of those years. It also maintained a $350,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of Year 1 that caused its Year 1 ending inventory to appear on its statements as $330,000 rather than the correct $350,000. Required: 1. Determine the correct amount of the company's gross profit in each of Year 1, Year 2, and Year 3. 2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of Year 1, Year 2, and Year 3. Complete this questions by entering your answers in the below tabs. Required 1 Required 2 Determine the correct amount of the company's gross profit in each of Year 1, Year 2, and Year 3. VIBRANT COMPANY Comparative Income Statements Year 1 Year 2 Year 3 3-year total $ 0 Cost of goods sold 0 0 0 01 0 0 0 Cost of goods sold Gross profit S 0 $ 0 $ 0 $ 0 Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of Year 1, Year 2, and Year 3. VIBRANT COMPANY Comparative Income Statements Year 1 Year 2 Year 3 3-year total $ 0 Cost of goods sold 0 0 0 Cost of goods sold 0 0 0 0 Gross profit $ 0 0 $ 0 $ 0