2) Accounting for inventory using the perpetual inventory systemFIFO, LIFO, and weighted-average, and comparing FIFO, LIFO, and weighted-average

Decorative Steel began January with 70 units of iron inventory that cost $25 each. During January, the company completed the following inventory transactions:

Units Unit Cost Unit Sale Price

Jan 3 Sale 60 $74

Jan 8 Purchase 80 $43

Jan 21 Sale 70 79

Jan 30 Purchase 20 49

Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method.

Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing method.

Prepare a perpetual inventory record for the merchandise inventory using the weighted-average inventory costing method.

Determine the companys cost of goods sold for January using FIFO, LIFO, and weighted-average inventory costing methods.

Compute gross profit for January using FIFO, LIFO, and weighted-average inventory costing methods.

If the business wanted to maximize gross profit, which method would it select?