3. Steel Mill began August with 75 units of iron inventory that cost $20 each. During August, the company completed the following inventory transactions: *(Click the icon to view the transactions.) Read the requirements Requirement 1. Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method. Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) Cost of Goods Sold Purchases Unit Cost Unit Total Cost Total Cost Inventory on Hand Unit Total Quantity Cost Cost Quantity Quantity Cost Aug. 1 Totals Requirement 2. Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing method. Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) Inventory on Hand Purchases Unit Cost Cost of Goods Sold Units Total Quantity | Cost Cost Total Cost Total Unit Cost Quantity Quantity Cost Date Aug. 1 Totals Requirement 3. Prepare a perpetual inventory record for the merchandise inventory using the weighted average inventory costing method. Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. Purchases Unit Cost of Goods Sold Unit Total Quantity Cost Cost Total Cost Inventory on Hand Unit Quantity Cost Cost Total Quantity Cost Date Aug. 1 Now 21 3000 Totals Requirement 4. Determine the company's cost of goods sold for August using FIFO, LIFO, and weighted-average inventory costing methods. The cost of goods sold amount for August using FIFO inventory costing is $ The cost of goods sold amount for August using LIFO inventory costing is $ The cost of goods sold amount for August using weighted average inventory costing is $ Requirement 5. Compute gross profit for August using FIFO, LIFO, and weighted-average inventory costing methods. Sales Revenue - Cost of Goods Sold = Gross profit FIFO LIFO Weighted average Requirement 6. If the business wanted to maximize gross profit, which method would it select? If the business wanted to maximize gross profit, it would select the (1) - e- method. 3: Data Table Aug. 3 Sale 8 Purchase 21 Sale 30 Purchase Units Unit Cost Unit Sales Price 65 $ 59 70 $ 28 6075 25 45
