Decorative Steel Inc. Inventory - Decorative Steel Inc...

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Decorative Steel, Inc., began August with 55 units of iron inventory that cost $35 each. DuringAugust, the company completed the following inventory transactions:.:.Requirements1. 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 August using FIFO, LIFO, and average cost.5. Compute gross profit for August using FIFO, LIFO, and average cost.SOLUTION:Req. 1IronFIFOPurchasesCost of Goods SoldInventory on HandDateQuantityUnitCostTotalCostQuantityUnitCostTotalCostQuantityUnitCostTotalCostBeg.55$35$1,925Aug. 345$35$1,5751035350Aug. 8103535075$52$3,90075523,900Aug. 211035350
60523,1201552780Aug. 30155278010555501055550Totals85$4,450115$5,04525$1,330Req. 2IronLIFOPurchasesCost of Goods SoldInventory on HandDateQuantityUnitCost

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