Problem 3 Ben & County Ideas began 2019 with 60,000 units of inventory that cost 36,000. During 2019, Town and Country purchased merchandise on account for 352,500 as follows: .. ... ***** Purchase 1 Purchase 2 Purchase 3 (100,000 units costing) (270,000 units costing) (160,000 units costing) 65,000.00 175,500.00 112,000.00 . . ***** ************* ****************************** TERRE... ******************************** cash payments on account totales $326,000 during the year Ben and County's sales during 2019 consisted of 520,000 units of invemtory for $660,000, all on account. The company uses the FIFO method Cash collections from customers were 630,000. Operating expenses totales 240,500, of which Ben & County paid $211,000 in cash. Ben & County credited accrued libilities for the remainder. At December 31, Ben & County accrued income tax expense at the rate of 35% of income tax . ********* ***** ********** . Requirements 1. Make summary journal entries to record Ben & Country transaction for the year assuming the company uses a perpetual inventory system (2. Determine the FIFO cost of Ben & County ending inventory at December 31, 2019 two ways: a. use a T-account ************************* YERTER*********** . ******************.............................................. ........... b. multiply the number of units on hand by the unit cost 3. Show how Ben & County would compute cost of goods sold for 2019. 4. Prepare Ben & County's income statement for 2019. Show totals for the gross profit and income ............................................................ before tax 5. Determine Ben and County's gross profit percentage, rate of inventory turn over, and net income as a percntage of sales for the year. In Ben & County's industry, a gross profit percentage of 40%, an inventory turnover of six times per year, and a net income percentage of 7% are considered excellent. How well does Ben and County compare to these industry averages? .......... ***