Fancy Iron began August with 70 units of iron inventory that cost $25 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.) Purchases Cost of Goods Sold Inventory on Hand - X Unit Total Unit Data Table Unit Cost Total Cost Total Cost Quantity Quantity Cost Cost Quantity Cost Date Aug 1 3 Units Unit Cost Unit Sales Price Aug. 3 Sale 60 s 74 80 S 43 21 8 Purchase 21 Sale 30 Purchase 70 79 20 49 30 Print Done 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.) Purchases Cost of Goods Sold Unit Units Total Total Cost Inventory on Hand Unit Total Quantity Cost Cost Date Quantity Cost Quantity Cost Cost Aug 21 30 Totals Purchases Cost of Goods Sold Unit Total Unit Total Inventory on Hand Unit Total Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost Date Aug. 1 3 8 21 30 Totals i Requirements - X 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 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? Weighted average Requirement 6. If the business wanted to maximize gross profit, which method would it select? Print Done If the business wanted to maximize gross profit, it would select the method. Enter any number in the edit fields and then continue to the next question. H Type here to search x 9:20 PM 5/16/2020
