Ornamental Iron Works began August with 45 units of iron inventory that cost $24 each. During August, the company completed the following inventory transactions: (Click the icon to view the transactions.) Read the requirements Total 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 Data Table - X Unit Total Unit Unit Total Date Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost Aug. 1 Units Unit Cost Unit Sales Price 3 Aug. 3 Sale 35 $ 63 8 8 Purchase 70 $ 32 21 Sale 65 77 21 30 Purchase 25 47 8 301 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 Inventory on Hand dfff33d3169633bb0bc96ef11bea X Unit Total Units Total Unit Total Date Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost C . i.gyazo.com/dfff33d3... Aug. 1 Data Table - X 3 + 81 Units Unit Cost Unit Sales Price 21 63 35 70 $ 32 Aug. 3 Sale 8 Purchase 21 Sale 30 Purchase 30 65 77 25 47 Print Done Totals Requirement 3. Prepare a perpetual inventory record for the merchandise inventory using the weighted average 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. Purchases Cost of Goods Sold Inventory on Hand Unit Total Unit Total Unit Total Date Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost Aug. 1 3 8 21 30 Totals Requirement 4. Determine the company's cost of goods sold for August using FIFO, LIFO, and weighted average inventory costing methods. dfff33d31696 x dfff33d3169 X + i.gyazo.com/dfff33d316 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 S 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 Data Table x Units Unit Cost LIFO Unit Sales Price 35 $ 63 Weighted average Requirement 6. If the business wanted to maximize gross profit, which method would it select? 70 $ 32 Aug. 3 Sale 8 Purchase 21 Sale 30 Purchase 65 77 25 47 If the business wanted to maximize gross profit, it would select the method. Print Done
