Refer to the information in Problem 5-3B and assume the periodic inventory system is used.
Required
1. Compute cost of goods available for sale and the number of units available for sale.
2. Compute the number of units in ending inventory.
3. Compute the cost assigned to ending inventory using

(a) FIFO

(b) LIFO

(c) Weighted average

(d) Specific identification.

(Round all amounts to cents.)
4. Compute gross profit earned by the company for each of the four costing methods in part 3.
5. If the company’s manager earns a bonus based on a percentage of gross profit, which method of inventory costing will the manager likely prefer?

Data from Problem 5-3B

Aloha Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. (For specific identification, units sold consist of 80 units from beginning inventory, 300 units from the May 6 purchase, and 100 units from the May 25 purchase.)