specializes in designer watches and leather goods. Fancy Timeuses the perpetual inventory system. Assume Fancy Timebegan Juneholding 60wristwatches that cost $ 20 each. During June​, Fancy Time bought and sold inventory as​ follows:

  1. Prepare a perpetual inventory record for Fancy Time using the FIFO, LIFO, and weighted-average inventory costing methods
  2. Journalize all of Fancy Time‘s inventory transactions for all three costing methods. Assume all sales and purchases are on account. Explanations are not required.
  3. Show the computation of gross profit for each method.
  4. Which method maximizes net income? Which method minimizes income taxes?
Jun. 3
Sold 35 units for $160 each.
Jun. 16
Purchased 40 units at $33 each.
Jun. 23
Sold 38 units for $160 each.

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