Accounting for inventory using the perpetual inventory systemFIFO,

LIFO, and weighted-average, and comparing FIFO, LIFO, and

weighted-average

Units Unit Cost Unit Sale Price

Jan. 3 Sale 60 $ 74

8 Purchase 80 $ 43>

21 Sale 70 79

30 Purchase 20 49

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.

weighted-average inventory costing methods.

5. Compute gross profit for January using FIFO, LIFO, and weighted-average

inventory costing methods.

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