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, 280 from the February 10 purchase, 100 from the March 13 purchase, 120 from the August 21 purchase, and 185 from the September 5 purchase.

4. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places.)

5. The companys manager earns a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager?

Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions Units Sold at Retail Units Acquired at Cost 620 units @ $45 per unit 380 units @ $42 per unit 100 units @ $30 per unit Date Activities Jan. 1 Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Totals 735 units @ $70 per unit 170 units @ $50 per unit 400 units @ $ 46 per unit 570 units @ $70 per unit 1,305 units 1,670 units Required: 1. Compute cost of goods available for sale and the number of units available for sale. Cost of goods available for sale Number of units available for sale units 2. Compute the number of units in ending inventory. Ending inventory units 3. Compute the cost assigned to ending inventory using (a) FIFO. (6) LIFO. (C) weighted average, and (d) specific identification. For specific identification, units sold consist of 620 units from beginning inventory, 280 from the February 10 purchase, 100 from the March 13 purchase, 120 from the August 21 purchase, and 185 from the September 5 purchase. Complete this question by entering your answers in the tabs below. Perpetual FIFO Perpetual LIFO Weighted Average Specific Id Compute the cost assigned to ending inventory using FIFO. (Round your average cost per unit to 2 decimal places.) Perpetual FIFO: Goods Purchased Cost of Goods Sold Inventory Balance Cost # of # of units Date Cost Cost # of units Inventory units Cost of Goods Sold sold per unit per unit Balance Jan 1 620 @ $ 45.00 = $ 27,900.00 Feb 10 per unit Mar 13 Mar 15 Aug 21 Sept 5 Sept 10 Totals S 0.00 S 0.00 Perpetual FIFO Perpetual LIFO > 3. Compute the cost assigned to ending inventory using (a) FIFO. (6) LIFO. (C) weighted average, and (d) specific identification. For specific identification, units sold consist of 620 units from beginning inventory, 280 from the February 10 purchase, 100 from the March 13 purchase, 120 from the August 21 purchase, and 185 from the September 5 purchase. Complete this question by entering your answers in the tabs below. Perpetual FIFO Perpetual LIFO Weighted Average Specific Id Compute the cost assigned to ending inventory using LIFO. (Round your average cost per unit to 2 decimal places.) Perpetual LIFO: Goods Purchased Cost of Goods Sold Inventory Balance # of Cost # of units Cost Cost Inventory Cost of Goods Sold # of units units per unit sold per unit Balance Jan 1 620 @ $ 45.00 - $ 27,900.00 Date per unit Feb 10 Mar 13 Mar 15 Aug 21 Sept 5 Sept 10 0 Totals S 0.00 3. Compute the cost assigned to ending inventory using (a) FIFO. (6) LIFO. (C) weighted average, and (d) specific identification. For specific identification, units sold consist of 620 units from beginning inventory, 280 from the February 10 purchase, 100 from the March 13 purchase, 120 from the August 21 purchase, and 185 from the September 5 purchase. Complete this question by entering your answers in the tabs below. Perpetual FIFO Perpetual LIFO Weighted Average Specific Id Compute the cost assigned to ending inventory using weighted average. (Round your average cost per unit to 2 decimal places.) Weighted Average Perpetual: Goods Purchased Cost of Goods Sold Inventory Balance Date # of Cost # of units Cost Cost of Goods Sold Cost # of units Inventory units sold per unit per unit Balance Jan 1 $ 45.00 = $ 27,900.00 per unit 620 @ Feb 10 Average Mar 13 Mar 15 Aug 21 Average Sept 5 Sept 10 Totals $ 0.00 3. Compute the cost assigned to ending inventory using (a) FIFO. (6) LIFO, (c) weighted average, and (c) specific identification. For specific identification, units sold consist of 620 units from beginning inventory, 280 from the February 10 purchase, 100 from the March 13 purchase, 120 from the August 21 purchase, and 185 from the September 5 purchase. Complete this question by entering your answers in the tabs below. Perpetual FIFO Perpetual LIFO Weighted Average Specific Id Compute the cost assigned to ending inventory using specific identification. For specific identification, units sold consist of 620 units from beginning inventory, 280 from the February 10 purchase, 100 from the March 13 purchase, 120 from the August 21 purchase, and 185 from the September 5 purchase. (Round your average cost per unit to 2 decimal places.) Specific Identification Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of Cost per Cost of # of units # of units # of units Goods Cost per Cost per unit in ending Ending Available Goods sold unit unit Sold for Sale inventory Inventory Beginning inventory 620 $ 45.00 $ 27,000 S 45.00 $ 0 Purchases: II Feb 10 380 $ 42.00 16,800 280 $ 42.00 11,760 100 $ 42.00 4,200 March 13 100 $ 30.00 5.400 0 S 30.00 0 Aug 21 170 $ 50.00 5,000 0 S 50.00 0 Sep 5 400 $ 46.00 23,000 $ 46.00 0 Total 1,670 S 77,200 280 S 11,760 100 $ 4,200 0 0