Decorative Steel began January with 70 units or iron inventory that cost S2S each.
During January, the company completed the following inventory transactions:

Requirements
1. Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method.
2. Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing method.
3. Prepare a perpetual inventory record for the merchandise inventory using the weighted-average inventory costing method.
4. Determine the company€™s cost of goods sold for January using FIFO, LIFO, and weighted-average inventory costing methods.
5. Compute gross profit for January using FIFO, LIFO, and weighted-average inventory costing methods.
6. If the business wanted to maximize gross profit, which method would it select?

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Units 60 80 70 20 Unit Cost Unit Sale Price Jan. 3 Sale $ 74 $ 43 8 Purchase 21 Sale 30 Purchase 79 49