Question
I'm a bit confused by this one, and just having a really hard time understanding it. Monoture Company uses a periodic inventory system. It entered
I'm a bit confused by this one, and just having a really hard time understanding it.
Monoture Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. (For specific identification, units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 200 from the March 13 purchase, 50 from the August 21 purchase, and 250 from the September 5 purchase.)
Date | Activities | # Units Acquired | Price Per Unit | Total Inventory | # units sold | Price per unit sold | Total Sales |
Jan. 1 | Beginning Inventory | 600 | $45.00 | $27,000.00 | |||
Feb. 10 | Purchase | 400 | $42.00 | $16,800.00 | |||
Mar. 13 | Purchase | 200 | $27.00 | $5,400.00 | |||
Mar. 15 | Sales |
| 800 | $75.00 | $60,000.00 | ||
Aug. 21 | Purchase | 100 | $50.00 | $5,000.00 | |||
Sep. 5 | Purchase | 500 | $46.00 | $23,000.00 | |||
Sep. 10 | Sales | 600 | $75.00 | $45,000.00 |
- Compute the cost of goods available for sale and the number of units available for sale
- Compute the number of units in ending inventory.
- Compute the cost assigned to in ending inventory using (A) FIFO, (B) LIFO, (C) weighted average, and (D) specific identification (Round all amounts to cents.)
- Compute gross profit earned by the company for each of the four costing methods in part 3.
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