Steel It began January with 55 units of iron inventory that cost $35 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?

Transcribed Image Text:

Unit Sales Price Unit Cost Units Jan. 3 Sale $ 83 45 $ 52 75 Purchase Sale 21 70 85 30 10 55 Purchase