Assignment Questions (P6-2B, P6-4B) P 6-2B Alternative cost flows - Perpetual Venus Company uses a perpetual inventory system. It entered into the following calendar-year 2011 pur- chases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory Jan. 10 Purchase Feb. 13 Purchase 600 units @ $55/unit 450 units @ $56/unit 200 units @ $57/unit Feb. 15 Sales 430 units @$90/unit July 21 Purchase 230 units @$58/unit Aug. 5 Purchase 345 units @ $59/unit Aug. 10 Sales Total 1,825 units 335 units @ $90/unit 765 units 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) specific identification-units sold consist of 600 units from beginning inventory and 165 units from the February 13 purchase, and (c) weighted average cost. (Round per unit costs to three decimals, but inventory balances to the dollar.) 4. Compute gross profit earned by the company for each of the three 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 inventory costing will the manager likely prefer?