Steel Mill began August with 50 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions: Requirements 1.

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Steel Mill began August with 50 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions:

Requirements
1. Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method.
2. Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing method.
3. Prepare a perpetual inventory record for the merchandise inventory using the weighted-average inventory costing method.
4. Determine the company's cost of goods sold for August using FIFO, LIFO, and weighted-average inventory costing methods.
5. Compute gross profit for August using FIFO, LIFO, and weighted-average inventory costing methods.
6. If the business wanted to maximize gross profit, which method would it select?

Units Unit Cost Unit Sales Price $ 85 Aug. 3 Sale 45 8 Purchase 90 $ 54 85 88 21 Sale 30 Purchase 58 30 15