HW 5
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchoses and sales transactions. Required: 1. Compute cost of goods avaliable for sale and the number of units available for sale. 2. Compute the number of units in ending inventory. 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 600 units from beginning inventory, 380 from the February 10 purchase, 120 from the March 13 purchase, 130 from the August 21 purchase, and 205 from the September 5 purchase.) Complete this question by entering your answers in the tabs below. Compute the cost assigned to ending inventory using FIFO. Note: Round your average cost per unit to 2 decimal places. Perpetual uFo Compute the cost assigned to ending inventory using LIFO. Note: Round your ayerage cost per unit to 2 decimal places. 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. 5. The company's manager eams a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager? Specific Identification Weighted Average LIFO FIFO Compute the cost assigned to ending inventory using weighted average. Note: Round your average cost per unit to 2 decimal daces. Compute the cost assigned to ending inventory using (a) FFO, (b) LFO, (d) weighted averoge, and (o) specific identification. (For specific identification, units sold consist of 600 units from beginning inventory, 380 from the february 10 purchase, 120 from the March 13 purchase, 130 from the August 21 purchose, and 205 from the September 5 purchase.) Complete this question by entering your answers in the tabs below. perpetual FIFO Compute the cost assigned to ending inventory using specific identification. (For specific identification, units sold consist of 600 units from beginning inventory. 380 from the February 10 purchase, 120 from the March 13 purchase, 130 from the August 21 purchase, and 205 from the September 5 purchase.) 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. 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 Weighted Average LiFO FIFO
