Shown below is activity for one of the products of Tom Matneys Office Equipment Co.:

INVENTORY ACTIVITY - DECEMBER
Date	Transaction	Units	Price
12/01	Beginning inventory	21,000	50
12/03	Purchase	15,000	52
12/04	Sale	5,000	100
12/06	Purchase	15,000	55
12/07	Sale	10,000	100
12/08	Sale	4,000	100
12/09	Sale	16,000	100
12/12	Purchase	28,000	45
12/14	Purchase	6,000	56
12/17	Sale	10,000	100
12/18	Sale	10,000	100
12/19	Sale	5,000	100
12/30	Purchase	8,000	55
12/31	Purchase	5,000	56

Mr. Matney is trying to determine which cost flow method as well as which inventory accounting method (perpetual or periodic) he should use to account for inventory valuation. He asks you to complete schedules which account for the flow of inventory using both methods (perpetual or periodic) as well as cost flow values using the FIFO, LIFO, and Weighted Average for the information provided above.

Furthermore, he would like to see a comparison of the calculation of gross profit under all six approaches (FIFO-Perpetual, FIFO-Periodic, LIFO-Perpetual, LIFO-Periodic, Weighted Average-Perpetual and Weighted Average-Periodic. You can use the attached worksheets to compete your calculations but that is not required. You can also use the EXCEL file attached to this assignment folder if you choose to. Provide written advice about which method Mr. Matney should use and why.

Mr. Matney would also like to make sure you include in your cost flow worksheets the proof that improves the likelihood the calculations you make are correct.