Exercise 3-Inventory Cost Flow Methods Decorative Steel began August with 55 units of iron inventory that cost $35 each. During August the firm completed the following inventory transactions: Units Unit cost Unit sale price 45 $83 August 3 Sale August 8 Purchase 75 $52 August 21 Sale 70 10 $85 August 30 Purchase 10 10 $55 Requirements 1. Prepare a perpetual inventory record, and calculate the cost of ending inventory for the inventory using FIFO, LIFO and average cost method. 2. Determine the firm's cost of sales for the entire month of August using FIFO, LIFO and average cost method. 3. Calculate gross profit for the entire month of August using FIFO, LIFO and average cost method. 4. Which method results in highest gross profit for the month? Provide reasoning and explanation