Solved by verified expert :P6-33A Accounting for inventory using the perpetual inventory system—FIFO, LIFO, and Weighted-Average, and comparing FIFO, LIFO, andWeighted-AverageDecorative Steel began August with 55 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions:Units Unit Cost Unit Sale PriceAug. 3 Sale 45 $83Aug. 8 Purchase 75 $52Aug. 21 Sale 70 $85Aug. 30 Purchase 10 $55Requirements1. Prepare a perpetual inventory record for the merchandise inventory usingthe FIFO inventory costing method.2. Prepare a perpetual inventory record for the merchandise inventory usingthe LIFO inventory costing method.3. Prepare a perpetual inventory record for the merchandise inventory usingthe 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-averageinventory costing methods.6. If the business wanted to maximize gross profit, which method would it select?
