50.1K

Verified Solution

Link Copied!

Steel it began August with 75 units of iron inventory that cost $20 each. During August, the company completed the following inventory transactions: (Click the icon to view the transactions.) Read the requirements hand at the end of the period. (Enter the oidest inventory layers first.) Data table Requirement 2. Prepare a perpetual inventory record for the marchandise 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, caiculate the quantity and total cost of merchandise imventory purchased, sold, and on hand at the end of the period. (Enter the oidest inventory layers first.) Requirement 3. Prepare a perpetual inventory record for the merchandise inventory using the weighted.average inventory costing method. Start by entering the beginning inventory balancos. 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 imventory purchased, sold, and on hand at the end of the period. 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 qoods sold amount for Auqust usina woiahted-average inventorv costing is 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: 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

Answer & Explanation Solved by verified expert

See Answer