Requirements

1. Prepare a perpetual inventory record for the merchandise inventory using FIFO inventory costing method.

2. Prepare a perpetual inventory record for the merchandise inventory using LIFO inventory costing method.

3. Prepare a perpetual inventory record for the merchandise inventory using the weighted-average inventory costing method.

4. Determine the companys cost of goods sold for January using FIFO, LIFO, and weighted-average inventory costing method.

5. Compute gross profit for January using FIFO, LIFO, and weighted-average inventory costing methods. FIFO GP $4,640

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

P-F:6-34B Accounting for inventory using the perpetual inventory system-FIFO, LIFO, and weighted-average, and comparing FIFO, LIFO, and weighted-average (Learning Objectives 2, 3) Steel It began January with 55 units of iron inventory that cost $35 each During January, the company completed the following inventory transactions