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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.
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, and (d) specific identification. (For specific identification, units sold consist of 620 units from beginning inventory, 210 from the February 10 purchase, 120 from the March 13 purchase, 140 from the August 21 purchase, and 390 from the September 5 purchase.) Weighted Average Perpetual: Perpetual LFO Specific Identification > Compute the cost assigned to ending inventory using specific identification. (For specific identification, units sold consist of 620 units from beginning inventory, 210 from the February 10 purchase, 120 from the March 13 purchase, 140 from the August 21 purchase, and 390 from the September 5 purchase.) 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your average cost per unlt to 2 decimal places. 5. The company's manager earns a bonus based on a percent of gross profit. Which method of Inventory costing produces the highest bonus for the manager? LIFO Specific Identification Weighted Average Perpetual FIFO
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