P6-33A Accounting for inventory using the perpetual inventory system FIFO, LIFO, and @Weighted-Average, and comparing FIFO, LIFO, and Weighted- Average

Decorative steel began August with 55 units of iron Inventory that cost $35 each. During August, the company completed the following inventory transactions:

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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 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?