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Marlow Company uses a perpetual inventory system. It entered into the following calendar year 2011 purchases and sales transactions. Date Activities Units Acquired at Cost

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Marlow Company uses a perpetual inventory system. It entered into the following calendar year 2011 purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail 600 units @ $44/unit 200 units @ $40/unit 100 units @ $20/unit Jan. Feb. 10 Mar. 13 Mar. 15 Aug 21 Sept. 5 Sept. 10 400 units @ $75/unit Beginning inventory ......... Purchase.... Purchase............... Sales ............. Purchase ......... Purchase...... Sales ............ Totals .............. 160 units @ $60/unit 280 units @ $48/unit 200 units @ $75/unit 600 units 1.340 units Required 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 (c) 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. Marlow Company uses a perpetual inventory system. It entered into the following calendar year 2011 purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail 600 units @ $44/unit 200 units @ $40/unit 100 units @ $20/unit Jan. Feb. 10 Mar. 13 Mar. 15 Aug 21 Sept. 5 Sept. 10 400 units @ $75/unit Beginning inventory ......... Purchase.... Purchase............... Sales ............. Purchase ......... Purchase...... Sales ............ Totals .............. 160 units @ $60/unit 280 units @ $48/unit 200 units @ $75/unit 600 units 1.340 units Required 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 (c) 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

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