Marlow Company uses a perpetual inventory system. During the year, it entered into the following purchases and sales transactions.

Date Activities Units Acquired at Cost Units Sold at Retail

Jan. $1$ Beginning inventory $840$ units @ $$44$ per unit

Feb. $10$ Purchase $260$ units @ $$40$ per unit

Mar. $13$ Purchase $220$ units @ $$20$ per unit

Mar. $15$ Sales $460$ units @ $$75$ per unit

Aug. $21$ Purchase $220$ units @ $$60$ per unit

Sept. $5$ Purchase $340$ units @ $$48$ per unit

Sept. $10$ Sales $380$ units @ $$75$ per unit

Totals $1,880$ units $840$ 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 $620$ units from beginning inventory and $220$ units from the March $13$ purchase, and $($c$)$ weighted average cost. $($Round per unit to $2$ decimals, but inventory balances to the dollar.$)$

$4.$ Compute gross profit earned by the company for each of the three costing methods in part $3.$

$5.$ 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?

multiple choice

Specific Identification

FIFO

Weighted average method