Decorative Steel began January with 70 units or iron inventory that cost S2S each. During January, the

Question:

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

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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Related Book For  answer-question

Horngrens Financial and Managerial Accounting

ISBN: 978-0133866292

5th edition

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

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