5-4AA (Algo) Perpetual: Alternative cost flows LO P3 Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. Date Activities January 1 Beginning inventory February 10 Purchase March 13 Purchase March 15 Sales August 21 Purchase September Purchase 5 September 10 Sales Totals Units Acquired at Cost Units Sold at Retail 560 units $55 per unit 440 units $52 per unit 140 units $40 per unit 180 units $60 per unit @ $57 per unit 540 units 1,860 units 710 units $85 per 'unit unit 720 units $85 per 1,430 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 2. Compute the number of units in ending inventory Ending Inventory units 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (d) weighted average, and (d) specific identification. (For specific identification, units sold consist of 560 units from beginning inventory. 340 from the February 10 purchase, 140 from the March 13 purchase, 130 from the August 21 purchase, and 260 from the September 5 purchase) Complete this question by entering your answers in the tabs below. Perpetual Perpetual Weighted Specific FIFO LIFO Average Id Compute the cost assigned to ending inventory using FIFO. (Round your average cost per unit to 2 decimal places.) Perpetual FIFO: Cost of Goods Sold Goods Purchased Inventory Balance Date Cost Number Cost Number of units per of units per Cost of Goods Sold Number Cost Inventory per of units Balance unit sold unit unit January 11 $ 560 at 55.00 30,800.00 February 10 Total February 101 March 131 Total March 13 March 15 Total March 15 August 21 Total August 21 September 5 Total September 5 September 10 Total September 10 Totals Perpetual FIFO Perpetual LIFO > 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (d) weighted average, and (d) specific identification. (For specific identification, units sold consist of 560 units from beginning inventory, 340 from the February 10 purchase, 140 from the March 13 purchase, 130 from the August 21 purchase, and 260 from the September 5 purchase.) Complete this question by entering your answers in the tabs below. Perpetual Perpetual Weighted Specific FIFO LIFO Average Id Compute the cost assigned to ending inventory using LIFO. (Round your average cost per un to 2 decimal places.) Perpetual LIFO: Cost of Goods Sold Goods Purchased Inventory Balance Date Cost Number Cost Cost Number Cost of Number Inventory of units per unit of units sold per unit Goods Sold per of units Balance unit $ January 1 S 560 at 55.00 30,800.00 February 10: Total February 10 March 13 Total March 13 March 15 Total March 15 August 21 Total August 21 September 5 Total September 5 September 10 Total September 10 Totals 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (d) weighted average, and (d) specific identification. (For specific identification, units sold consist of 560 units from beginning inventory, 340 from the February 10 purchase, 140 from the March 13 purchase, 130 from the August 21 purchase, and 260 from the September 5 purchase). Complete this question by entering your answers in the tabs below. Perpetual Perpetual Weighted Specific FIFO LIFO Average Id Compute the cost assigned to ending inventory using weighted average. (Round your average cost per unit to 2 decimal places.) Weighted Average Perpetual: Cost of Goods Sold Goods Purchased Inventory Balance Date Cost Number Cost Cost Number per of units per of units Cost of Goods Sold Number Inventory of units per Balance unit sold unit unit January 1 $ 560 at 55.00 30,800.00 February 10 Average February 10 March 13 Average March 13 March 15 August 211 Average August 21 September 5 Average September 5 September 10 Totals 4. Compute gross profit earned by the company for each of the four costing methods Note: Round your average cost per unit to 2 decimal places. Sales Less: Cost of goods sold Gross profit FIFO LIFO Weighted Specific Average Identification 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? Weighted Average Ending inventory units 3. Compute the cost assigned to ending inventory using (a) FIFO. ( LIFO, (d) weighted average, and (d) specific identification. (For specific identification, units sold consist of 560 units from beginning inventory, 340 from the February 10 purchase, 140 from the March 13 purchase, 130 from the August 21 purchase, and 260 from the September 5 purchase.) Complete this question by entering your answers in the tabs below. Perpetual Perpetual Weighted Specific FIFO LIFO Average Id Compute the cost assigned to ending inventory using specific identification. (For specific identification, units sold consist of 560 units from beginning inventory, 340 from the February 10 purchase, 140 from the March 13 purchase, 130 from the August 21 purchase, and 260 from the September 5 purchase.) Specific Identification Show less A Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of Number Date Cost Number Cost Cost of Number Goods per of units Available unit of units sold per unit Goods Sold for Sale of units in ending per unit Inventory inventory Cost Ending January 1 February 10 March 13 August 21 September 5 Total 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your average cost per unit to 2 decimal places. FIFO LIFO Weighted Specific Average identification Sales Less: Cost of goods sold Gross profit 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? Weighted Average Specific Identification FIFO UFO