P6-33B Accounting for inventory using the perpetual inventory system-FIFO, LIFO and weighted average.

Fit world began january with merchandise inventory of 90 crates if vitamins that cost a total of $5850. During the month, Fit World purchased and sold merchandise on account as follows:

jan. 2 Purchase 130 crates @ $76 each

jan 5. Sale 140 crates @ $100 each

jan 16 Purchase 170 crates @ $86 each

jan 27 Sale 180 crates @ $104 each

Requirements

1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the companys cost of goods sold, ending merchandise inventory, and gross profit.

2. Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the companys cost of goods sold, ending merchandise inventory, and gross profit.

3. prepare a perpetual inventory record, using the weighted-average inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. ( Round weighted-average cost per unit to the nearestcent and all other amounts to the nearest dollar.)

4. If the business wanted to pay the least amount of income taxes possible, which method would it choose?