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 transactions: Units Unit Cost Unit Sale Price Jan. 3 Sale 60 $ 74 8 Purchase 80 $ 43 21 Sale 70 79 30 Purchase 20 49 Requirements Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method. Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing method. Prepare a perpetual inventory record for the merchandise inventory using the weighted-average inventory costing method. Determine the company's cost of goods sold for January using FIFO, LIFO, and weighted-average inventory costing methods. Compute gross profit for January using FIFO, LIFO, and weighted-average inventory costing methods. If the business wanted to maximize gross profit, which method would it select