ezto.mheducation.com Saved Hel Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. Date Activities Units Acquired at Cost January 1 Beginning inventory Units Sold at Retail 600 units @ $40 per unit February 10 Purchase 400 units @ $37 per unit March 13 Purchase 190 units @ $15 per unit March 15 Sales 885 units e$70 per unit August 21 Purchase 190 units @ $45 per unit September 5 Purchase 550 units @ $43 per unit September 10 Sales 740 units @ $78 per unit Totals 1,938 units 1,545 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 (W) FIFO (6) LIFO. ( weighted average, and (c) specific identification. (For specific identification, units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 190 from the March 13 purchase, 140 from the August 21 purchase, and 315 from the September 5 purchase.) Complete this question by entering your answers in the tabs below. Perpetual FIFA Perpetual UFO Weighted Average Specified Compute the cost assigned to ending inventory using FIFO, (Round your average cost per unit to 2 decimat places) Perpetual Fifo: Goods Purchased Cost of Goods Sold Inventory Balance Date # of units Cost per Cost per # of units Inventory Cuat per Cost of Goods Sold of unite unit unit Balance 0001 $40.00 $ 24,000.00 January 1 sold February 10 Total February 10 March 13 Total March 13 March 15 Total March 15 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 Perpetual LIFO > 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 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? FIFO Specific Identification UFO Weighted Average Perpetual LIFO: Goods Purchased Date # of units Cost per Cost of Goods Sold # of units Cost per sold Cost of Goods Sold unit unit Inventory Balance Cost per Inventory #of units unit Balance 600 at $ 40,00 - $ 24,000.00 January 1 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 5 Total September 5 September 10 Total September 10 Totals Weighted Average Perpetual Cost of Goods Sold # of units Cost per Cost of Goods Sold sold unit Date Goods Purchased Cost per # of units unit Inventory Balance Cost per Inventory # of units unit Balance 600 at $ 40.00 $ 24,000.00 January 1 February 10 Average February 10 March 13 Average March 13 March 15 August 21 Average August 21 September 5 Average September 5 September 10 Totals Specified > 14 of 15
