Ornamental Iron Works began August with 50 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions: (Click the icon to view the transactions.) Read the requirements. Data table Aug. 3 Aug. 8 Aug. 21 Aug. 30 Sale Purchase Sale Purchase Units 45 90 $ 85 Print 15 Unit Cost 54 58 Done Unit Sales Price $ 85 88 Requirements 1. Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method. 2. 3. Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing method. 4. Prepare a perpetual inventory record for the merchandise inventory using the weighted-average inventory costing method. Determine the company's cost of goods sold for August using FIFO, LIFO, and weighted-average inventory costing methods. 5. 6. If the business wanted to maximize gross profit, which method would it select? Compute gross profit for August using FIFO, LIFO, and weighted-average inventory costing methods. -
Ornamental Iron Works began August with 50 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions: (Click the icon to view the transactions.) Read the requirements. Data table Aug. 3 Aug. 8 Aug. 21 Aug. 30 Sale Purchase Sale Purchase Units 45 90 $ 85 Print 15 Unit Cost 54 58 Done Unit Sales Price $ 85 88 Requirements 1. Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method. 2. 3. Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing method. 4. Prepare a perpetual inventory record for the merchandise inventory using the weighted-average inventory costing method. Determine the company's cost of goods sold for August using FIFO, LIFO, and weighted-average inventory costing methods. 5. 6. If the business wanted to maximize gross profit, which method would it select? Compute gross profit for August using FIFO, LIFO, and weighted-average inventory costing methods. -
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Ornamental Iron Works began August with 50 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions:
(Click the icon to view the transactions.)
Read the requirements.
Data table
Aug. 3
Aug. 8
Aug. 21
Aug. 30
Sale
Purchase
Sale
Purchase
Units
45
90
85
15
Print
Unit Cost
$ 54
58
Done
Unit Sales Price
$
85
88
- X
Requirements
4
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.
4. Determine the company's cost of goods sold for August using FIFO, LIFO,
and weighted-average inventory costing methods.
Prepare a perpetual inventory record for the merchandise inventory using the
weighted-average inventory costing method.
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?
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