Group Project 3 Problem 1 40 Pointsthe Gant Company Uses The Perpetual Inventory

Group Project 3Problem 1 40 PointsThe Gant Company uses the perpetual Inventory system and the following information is provided: Date Quantity Unit Cost Total Cost1/1/22 Beg. inventory 6,000 $14.20 $85,200February - Sales 3,500April - Purchases 5,000 $15.00 $75,000June - Sales 4,000August - Purchases 3,400 $15.25 $51,850September - Sales 3,000Nov. Purchases 1,600 $15.50 $24,800December Sales 3,5001. Complete the FIFO perpetual schedule from the work paper provided.2. Complete the LIFO perpetual Schedule from the work paper provided.3. Compute the income statement through gross profit assuming the Sales was $330,000 for the year in the attached work paper.4. 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. 5. 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 1/1/21 was