Requirement $1.$ Prepare a perpetual inventory$$ record, using the FIFO inventory costing$$ method, and determine the$$ company's cost of goods$$ sold, ending merchandise$$ inventory, and gross profit.

Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. 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

Jan. $1$

$95$

$40$

$3800$

$5$

$155$

$71$

$11005$

$95$

$40$

$3800$

$155$

$71$

$11005$

$13$

$95$

$40$

$3800$

$70$

$71$

$4970$

$85$

$71$

$6035$

$18$

$193$

$75$

$14475$

$70$

$71$

$4970$

$193$

$75$

$14475$

$26$

$70$

$71$

$4970$

$63$

$75$

$4725$

$130$

$75$

$9750$

Totals

$348$

$25480$

$380$

$24555$

$63$

$4725$

Part $2$

Determine the$$ company's gross profit using the FIFO inventory costing method.

Gross profit is

using the FIFO inventory costing method.

Part $3$

Requirement $2.$ Prepare a perpetual inventory$$ record, using the LIFO inventory costing$$ method, and determine the$$ company's cost of goods$$ sold, ending merchandise$$ inventory, and gross profit.

Begin by computing the cost of goods sold and cost of ending merchandise inventory using the LIFO inventory costing method. 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

Jan. $1$

$5$

$13$

$18$

$26$

Totals

Part $4$

Determine the$$ company's gross profit using the LIFO inventory costing method.

Gross profit is

using the LIFO inventory costing method.

Part $5$

Requirement $3.$ Prepare a perpetual inventory$$ record, using the$$ weighted$-$average inventory costing$$ method, and determine the$$ company's cost of goods$$ sold, ending merchandise$$ inventory, and gross profit.

Begin by computing the cost of goods sold and cost of ending merchandise inventory using the$$ weighted$-$average inventory costing method. Enter the transactions in chronological$$ 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. $($Round weighted$-$average cost per unit to the nearest cent and all other amounts to the nearest$$ dollar.$)$

Purchases

Cost of Goods Sold

Inventory on Hand

Unit

Total

Unit

Total

Unit

Total

Date

Quantity

Cost

Cost

Quantity

Cost

Cost

Quantity

Cost

Cost

Jan. $1$

$5$

$13$

$18$

$26$

Totals

Part $6$

Determine the$$ company's gross profit using the$$ weighted$-$average inventory costing method.

Gross profit is

using the weighted$-$average inventory costing method.

Part $7$

Requirement $4.$ If the business wanted to pay the least amount of income taxes$$ possible, which method would it$$ choose?

If the business wanted to pay the least amount of income taxes$$ possible, they would choose

$$

FIFO.

LIFO.

weighted$-$average.