Venus Company uses a perpetual inventory system. It entered into the following calendar-year 2005 purchases and sales transactions:

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) specific identifica¬ tion {Note: The units sold consist of 600 units from beginning inventory and 165 units from the February 13 purchase), and {d) weighted average.
4. Compute gross profit earned by the company for each of the four costing methods in part 3.
Analysis Component 5. If the company’s manager earns a bonus based on a percent of gross profit, which method of in¬ ventory costing will the manager likely prefer?

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Date Activities Jan. 1 Beginning inventory Units Acquired at Cost Units Sold at Retail 600 units @ $55/unit Jan. 10 Purchase 450 units @ $56/unit Feb. 13 Purchase 200 units @ $57/unit Feb. 15 Sales 430 units @ $90/unit July 21 Purchase Aug. 5 Purchase 230 units @ $58/unit 345 units @ $59/unit Aug. 10 Sales Total 1,825 units 335 units @$90/unit 765 units