Pakistan steel mills began June with 99 units of iron inventory that cost Rs.40 each. During

June, the company completed the following inventory transactions: (10)

Date	Sale/purchase action	Units	Unit Cost (Rs.)	Unit sale Price (Rs.)
June. 4	sale	55		83
10	purchase	75	52
22	sale	70		85
30	purchase	15	55
30	sale	52		88

Requirements

1. Prepare a perpetual inventory record for the merchandise inventory using the

FIFO inventory

2. Prepare a perpetual inventory record for the merchandise inventory using the

Weighted-average method.

3. Determine the companys cost of goods sold for June using FIFO,and

Weighted-average methods.

4. Compute gross profit for June using FIFO, and weighted-average inventory

Costing method.

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