Problem - Accounting for inventory using the perpetual inventory system-FIFO, LIFO, and weighted-average, and comparing FIFO, LIFO, and weighted-average
Units Unit Cost Unit Sale Price
Jan. 3 Sale 60 $ 74
8 Purchase 80 $ 43>
21 Sale 70 79
30 Purchase 20 49
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 inventory using the LIFO inventory costing method.
3. Prepare a perpetual inventory record for the merchandise inventory using the weighted-average inventory costing method.
4. Compute gross profit for January using FIFO, LIFO, and weighted-average inventory costing methods.
5. If the business wanted to maximize gross profit, which method would it select?