Requirements

Prepare a perpetual inventory record for Fancy Time using the FIFO, LIFO, and weighted$-$average inventory costing methods.

Journalize all of Fancy Time's inventory transactions for June under all three costing methods. Assume all sales and purchases are on account. Explanations are not required.

Show the computation of gross profit for each method.

Which method maximizes net income? Which method minimizes income taxes?

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