Iron Man began August with 65 units of iron inventory that cost $30 each. During August, 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 August using FIFO, LIFO, and weighted-average inventory costing methods.
5. Compute gross profit for August using FIFO, LIFO, and weighted-average inventory costing methods.
6. If the business wanted to maximize gross profit, which method would it select?

Transcribed Image Text:

Unit Sale Price Units 50 85 80 20 Unit Cost $ 81 Aug. 3 Sale 50 8 Purchase 21 Sale 30 Purchase 75 45