Ornamental Iron WorksOrnamental Iron Works

began

AugustAugust

with

6060

units of iron inventory that cost

$ 25$25

each. During

AugustAugust,

the company completed the following inventory transactions:

Units

Unit Cost

Unit Sales Price

Aug. 3

Sale

45

$72

8

Purchase

65

$41

21

Sale

55

86

30

Purchase

20

56

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 AugustAugust using FIFO, LIFO, and weighted-average inventory costing methods.
5.	Compute gross profit for AugustAugust using FIFO, LIFO, and weighted-average inventory costing methods.
6.	If the business wanted to maximize gross profit, which method would it select?

Omamental lon Werks began August with 60 unts of an inventory that cost s25 each. During August the company complenad the foloving inventory tansadtions m CA he icon to view the tansacions) Read the outements Requirement 1. Prepare a perpatual inventery record for the merchandise invertory using the FIFO inventory costing mathod Sanby erteing the begening inventory balances Enter the tansacdions in chrenological order calculeting new mventery on hand belances ater ach tansaction Once at of the tansap est of merchandise nvertory purchased sold and on hand at the end of the perlod Enter the oldest inventory layers frst) Requirements Purchases Cost of Goods Sold Inventery on Hand Unt Total Unit Total Unit Tetal 1. Prapare a perpatual iventary record for the marchandsa inventury using the FIFO ventory costing methd 2 Prepare a perpetual inventory record for the merchandse inventery using the Date Quantity Aug 1 Cost Quarcity Cost Cost Quantity Cost Cest Data Table .LPO vetory costing method yusing the Units Unit Cost Unt Sales Pice nd weluhted erage inertory costng mehed s CP Auu uing FFO, LIFO, and wegedaverge 21 Aug 3 Sale 45 72 SPurchase 41 30 6. Hthe business vanted to maie gos prot which nehod would 21 Sale 55 salect 30 Purchase 20 56 Tetas Prnt Done Requirement 2. Prepare a perpetual inventary recond for the merchandise inventory using the LIFO inventor Pant Done Requikement 2. Prepare a perpetual inventary record for the merchandse inventory uning the LIFO Inventory costing method. Start by entering the beginning inventory balances Enter the transacdions in chronological order calculating new inventory on hand balances ater each transaction. Once al of the transactions have been entared into the perpetual record, caltulate the quanity and tetal cost of merchandise inventory purchased sald and on hand at the end of the period Enter the oldest inventory layers frst) Purchases Cost of Goods Sold Inventory on Hand Unit Total Units Total Unit Total Quantity Date Cost Cost Quantity Cost Cost Quantity Cost Cost Aug 1 21 30 Totals Requirement 3. Prspare a perpatual inventory record for the merchandise inventory using the weighted-average inventory casting method Start by enteing the beginning inventory balances. Erter the transactions in chronological order calculating new inventory on hand balances ater each transection. Once al of the transactions have been entered into the perpetual record, calculate the quantiy and total cost of merchandise inventory purchased sold and on hand at the end of the perlod. Iventory on Hand Purchases Cost of Goods Sold Total Unit Unt Total Total Dane Quartity Cost Cost Quantiy Cost Cost Quantity Cost Cost Aug 1 21 30 Toals Requirement 4. Detemine the company's cost of goods sold for August using FIFO, LIFO, and weigheed average inventary coting methodi The cost of goods sold amount for August using FIFO ventary costing is s The cost of goods sold amount for August using LIFO nvantary costing is s The cost af goods sold amount for August using weightedaverage inentory costing is 5 Enter any number in the edt felds and hen continue to the next question 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 Weighted-average Requirement 6. If the business wanted to maximize gross profit, which method would it select? 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