Marlow Company uses a perpetual inventory system. During the year, it entered into the following purchases and sales transactions. Date Activities Jan. 1 Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sep. 5 Purchase Sep. 10 Sales Totals Units Acquired at Cost 600 units @ $44/unit 400 units @ $40/unit 200 units @ $20/unit Units Sold at Retail 400 units @ $75/unit 160 units @ $60/unit 280 units @ $48/unit 1,340 units 200 units @ $75/unit 600 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 500 units from beginning inventory and 100 units from the March 13 purchase, and (e) 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? Check (3) Ending inventory: FIFO, $33,040, WAC $34,055