Assume the perpetual inventory system is used unless stated otherwise. Accounting for inventory using the perpetual inventory system—FIFO, LIFO, and Weighted-average, and comparing FIFO, LIFO, and weighted-average Steel Mill began August with 50 units of iron inventory that cost S35 each. During August, the company completed the following inventory transactions:

Units Unit Cost Unit sale price

Aug. 3 Sale 45 $85
8 Purchase 90 $54
21 Sale 85 88
30 Purchase 15 58


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. Determine the company's cost of goods sold for August using FIFO, LIFO, and weighted-average inventory costing methods.
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?