Monitor Industries, Inc., completed the following inventory transactions during the month of March: E (Click the icon to view the transactions.) Read the requirements. Requirement 1. Without resorting to calculations, determine which inventory method will result in Monitor Industries, Inc., paying the lowest income taxes. In times of inventory prices, as is the case here, the method will result in Monitor Industries, Inc., paying the lowest income taxes. Requirement 2. Prepare a perpetual inventory record using FIFO. - X 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 re at the end of the period. (For cost of goods sold, enter the first layer out under FIFO costing first. For inventory on hand, enter the oldest inventory layer first.) Purchases Cost of goods sold Inventory on hand Unit Total Unit Total Unit Total Data Table Date Qty Cost Cost Qty Cost Cost | Qty Cost Cost Mar Mar 40 Date Item Quantity Unit Cost Mar 1 Balance Mar 12 4 Purchase 12 Sale Mar 22L 22 Purchase 31 Sale Mar 31 Print Done Total Requirement 3. Prepare a perpetual inventory record using LIFO. Start by entering the opening inventory balance. 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 inventory purchased, the end of the period. (For cost of goods sold, enter the first layer out under LIFO costing first. For inventory on hand, enter the oldest inventory layer first.) Purchases Unit Total Cost Cost Cost of goods sold Total Qty Cost Cost Unit Inventory on hand Unit Total | Qty Cost A Data Table Date Qty Cost Date Mar Quantity Unit Cost 25 $ 80 $ 78 Mar 12 Item 1 Balance 4 Purchase 12 Sale 22 Purchase 31 Sale Mar 22 54 $ 77 Mar 31 Print Done Total Requirement 4. Prepare a perpetual inventory record using average cost. Round average cost per unit to the nearest cent and all other amounts to the nearest dollar. Start by entering the opening inventory balance. 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 inventory purchased, the end of the period. (Round average cost per unit to the nearest cent and all other amounts to the nearest dollar.) Purchases Unit Total Cost Cost Cost of goods sold Unit Total Cost Cost Inventory on hand Unit Total Cost Cost Date Qty Qty Qty Mar Mar 121 Mar Mar Total 22 31
