How are they doing at controlling their inventory in $2022$ compared to $2021?$

A$.$

B$.$

C$.$ LIFO Perpetual System Group Project $3$

Problem $140$ Points

The Gant Company uses the perpetual Inventory system and the following information is provided:

Complete the FIFO perpetual schedule from the work paper provided.

Complete the LIFO perpetual Schedule from the work paper provided.

Compute the income statement through gross profit assuming the Sales was $$330,000$ for the year

in the attached work paper.

Assume that a physical count of the inventory was taken at December and there were only $1,700$

units that were available for sale. Assume that the remaining inventory was damaged and

unsalable. Record the adjusting entry for inventory shrinkage using both the FIFO and LIFO

method.

Assume for part $5$ that Gant is using the FIFO Method. Is Gant doing a better job controlling

inventory in $2022$ or $2021.$ In order the determine this you will need to compute the inventory

turnover for $2022$ and $2021.$ For $2021,$ assume that the cost of goods sold was $$230,000$ and the

Inventory as of $\frac{1}{1}\frac{?}{21}$ was $$91,000.($Make sure to take into account the inventory shrinkage in part

$4$ when applying the FIFO method.

A$.$ What are the reasons why the FIFO method best reflects the results of operations?

B$.$ What are the reasons why the LIFO method best reflects the results of operations?

C$.$ What are the advantages and disadvantages of using the Perpetual Inventory system as

contrasted with the periodic system?$\text{'}$

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