I ONLY NEED HELP WITH REQUIREMENT 4-6

Requirement 1. Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method.

Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)

	Purchases			Cost of Goods Sold			Inventory on Hand
		Unit	Total		Unit	Total		Unit	Total
Date	Quantity	Cost	Cost	Quantity	Cost	Cost	Quantity	Cost	Cost
Aug. 1							75	20	1500
3				65	20	1300	10	20	200
8	70	28	1960				10	20	200
							70	28	1960
21				10	20	200
				50	28	1400	20	28	560
30	25	45	1125				20	28	560
							25	45	1125
Totals	95		3085	125		2900	45

Requirement 2. Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing method.

Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)

	Purchases			Cost of Goods Sold			Inventory on Hand
		Unit	Total		Units	Total		Unit	Total
Date	Quantity	Cost	Cost	Quantity	Cost	Cost	Quantity	Cost	Cost
Aug. 1							75	20	1500
3				65	20	1300	10	20	200
8	70	28	1960				10	20	200
							70	28	1960
21				60	28	1680	10	20	200
							10	28	280
30	25	45	1125				10	20	200
							10	28	280
							25	45
Totals	95		3085	125		2980	45		1605

Requirement 3. Prepare a perpetual inventory record for the merchandise inventory using the weighted-average inventory costing method.

Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period.

	Purchases			Cost of Goods Sold			Inventory on Hand
		Unit	Total		Unit	Total		Unit	Total
Date	Quantity	Cost	Cost	Quantity	Cost	Cost	Quantity	Cost	Cost
Aug. 1							75	20	1500
3				65	20	1300	10	20	200
8	70	28	1960				80	27	2160
21				60	27	1620	20	27	540
30	25	45	1125				45	37
Totals	95		3085	125		2920	65		2205

Requirement 4. Determine the company's cost of goods sold for

August

using FIFO, LIFO, and weighted-average inventory costing methods.

The cost of goods sold amount for August using FIFO inventory costing is

.

The cost of goods sold amount for August using LIFO inventory costing is

.

The cost of goods sold amount for August using weighted-average inventory costing is

.

Requirement 5. Compute gross profit for

August

using FIFO, LIFO, and weighted-average inventory costing methods.

	Sales Revenue		Cost of Goods Sold	=	Gross profit
FIFO				=
LIFO		-		=
Weighted-average		-		=

Requirement 6. If the business wanted to maximize gross profit, which method would it select?

If the business wanted to maximize gross profit, it would select the

_______method.