(L.0BJ. 3, 4) Accounting for inventory using the perpetual system—FIFO, LIFO, and averag...

(L.0BJ. 3, 4) Accounting for inventory using the perpetual system—FIFO, LIFO, and average cost; comparing FIFO, LIFO, and average cost [20—25 min]

Decorative Steel began October with 47 units of iron inventory that cost $35 each. During October, Decorative Steel completed the following inventory transactions:

Requirements

1. Prepare a perpetual inventory record for the inventory using FIFO.

2. Prepare a perpetual inventory record for the inventory using LIFO.

3. Prepare a perpetual inventory record for the inventory using average Cost.

4. Determine the company’s cost of goods sold for October using FIFO, LIFO, and average cost.

5. Compute gross profit for October using FIFO, LIFO, and average Cost.