View the purchases. View the additional information.

Read the requirements.

Purchases

April units @ cost of $$55)$

August $(49,000$ units @ cost of $$59)$

November units @ cost of $$65)$

Total purchases.

Additional Information

Cash payments on account totalled $$7,921,000.$ During the current fiscal year, the store sold $155,000$ units of merchandise for $$14,880,000.$ Cash accounted for $$5,100,000$ of this, and the balance was on account. Movie Buy uses the FIFO method for inventories. Operating expenses for the year were $$2,000,000.$ The store paid $75\%$ in cash and accrued the rest as accrued liabilities. The store accrued income tax at the rate of $32\%.$

Required

Make summary journal entries to record the store's transactions for the current fiscal year ended February $28,20$XX$.$ Movie Buy uses a perpetual inventory system.

Prepare a T$-$account to show the activity in the Inventory account.

Prepare the store's income statement for the year ended February $28,20xx.$ Show totals for gross profit, income before tax, and net income.

Compute the gross profit percentage. How does this compare with last year's gross profit percentage of $41\%?$ What are some possible reasons for the change?

ted to the sale. We will do this in the next journal entry. $($Record debits first, then credits. Exclude explanations from journal entries.$)$

credits. Exclude exnlanations from iournal entries. Round vour answer to the nearest whole dollar.$)$