Learning Objectives 2, 3 5. FIFO GP $4,640 P6-34B Accounting for inventory using the perpetual inventory system, FIFO, LIFO, and weighted-average, and comparing FIFO, LIFO, and weighted average Steel It began January with 55 units of iron inventory that cost $35 each. During January, the company completed the following inventory transactions: Units Unit Cost Unit Sales Price $ 83 Jan. 3 Sale 45 8 Purchase 75 $52 21 Sale 70 85 30 Purchase 10 55 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. Determine the company's cost of goods sold for January using FIFO, LIFO, and weighted average inventory costing methods. 5. Compute gross profit for January using FIFO, LIFO, and weighted-average inven- tory costing methods. 6. If the business wanted to maximize gross profit, which method would it select? CHAPTER 6