P6-34B Accounting for inventory using the perpetual inventory system- FIFO, LIFO, and weighted-average, and comparing FIFO, LIFO, and weighted average.

Decorative steel began January with 70 units of iron inventory that cost $25 each. During January, the company completed the following inventory transaction:

Units Unit Cost unit sale price

Jan 3 Sale 60 $74

jan 8 Purchase 80 $43

jan 21 Sale 70 $79

jan 30 Purchase 20 $49

Requirments:

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 january using FIFO, LIFO, and weighted-average inventory costing methods.

5. Compute gross profit for january using FIFO, LIFO, and weighted-average inventory costing methods.

6. If the business wanted to maximize gross profit, which method would it select?