Ornamental Iron Works began August with 75 units of iron inventory that cost $20 each. During August, the company completed the following inventory transactions: E: (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 Inventory on Hand Unit Total Cost of Goods Sold Unit Total Quantity Cost Cost Unit Total - X Requirements Date Quantity Cost Cost Quantity Cost Cost Data table Aug. 1 3 3 Units Unit Cost Unit Sales Price $ 59 8 65 70 $ 28 21 Aug. 3 Sale Aug. 8 Purchase Aug. 21 Sale Aug. 30 Purchase 60 75 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? 25 45 30 Totals Print Done Print Done Ornamental Iron Works began August with 75 units of iron inventory that cost $20 each. During August, the company completed the following inventory transactions: E: (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 Inventory on Hand Unit Total Cost of Goods Sold Unit Total Quantity Cost Cost Unit Total - X Requirements Date Quantity Cost Cost Quantity Cost Cost Data table Aug. 1 3 3 Units Unit Cost Unit Sales Price $ 59 8 65 70 $ 28 21 Aug. 3 Sale Aug. 8 Purchase Aug. 21 Sale Aug. 30 Purchase 60 75 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? 25 45 30 Totals Print Done Print Done
