any uses perpetual ory system dar year pu ases and sales transaction Units Sold at Retail 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 Units Acquired at Cost 700 units @ $50 per unit 350 units a $44 per unit 150 units $32 per unit 190 units @ $55 per unit 540 units $51 per unit 1,930 units 705 units @ $88 per unit 730 units @ $80 per unit 1,435 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 700 units from beginning inventory, 250 from the February 10 purchase, 150 from the March 13 purchase, 140 from the August 21 purchase, and 195 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 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 # of Cost units Cost of Goods Sold # of units Cost Cost of Goods sold per unit Sold Date Inventory Balance Cost # of units Inventory per unit Balance 700 @ $50.00 = $ 35,000.00 per unit Jan 1 Feb 10 Mar 13 Mar 15 Aug 21 Sept 5 Sept 10 Totals $ 0.00 $ 0.00 Perpetual FIFO Perpetual LIFO > 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 # of Cost units Cost of Goods Sold # of units Cost Cost of Goods sold per unit Sold Date Inventory Balance # of units Cost Inventory per unit Balance 700 @ $50.00 = $ 35,000.00 per unit Jan 1 Feb 10 Mar 13 Mar 15 Aug 21 Sept 5 Sept 10 0 Totals $ 0.00 Perpetual FIFO Perpetual LIFO Weighted Average Specific Id Specific Identification Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units Cost per sold unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory 700 $ 50.00 $ 27,000 0 $ 50.00 $ 0 350 250 $ 44.00 100 Beginning inventory Purchases: Feb 10 March 13 Aug 21 Sep 5 Total 11,000 0 4,400 0 150 $ 44.00 $ 32.00 $ 55.00 $ 51.00 16,800 5,400 5,000 23,000 $ 77,200 $ 44.00 $ 32.00 $ 55.00 $ 51.00 190 0 0 540 0 0 1,930 250 $ 11,000 100 $ 4,400 ( Weighted Average Specific id 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.) FIFO LIFO Weighted Average Specific Identification Sales Less: Cost of goods sold Gross profit $ 0 $ $ 0 $ 0 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? Specific Identification LIFO FIFO Weighted Average
