Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. Date Jan. 1 Beginning inventory Feb. 10 Purchase
Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. Date Jan. 1 Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Activities Units Acquired at Cost 600 units $45.00 per unit 400 units $42.00 per unit 200 units $27.00 per unit Units Sold at Retail 800 units $75.00 per unit 100 units $50.00 per unit 00 units 46.00 per unit 600 units $75.00 per unit 1,400 units Totals 1,800 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) LIFO, (c) weighted average, and (d) specific identification. 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 4. Compute gross profit earned by the company for each of the four costing methods. Complete this question by entering your answers in the tabs below Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2Required 3 Required 4 Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places.) Weighted Average Specific FIFO LIFO Sales Less:Cost of goods sold Gross profit Identification |s 105,000 $105,000 $ 105,000 105.000 59,000 $ 105,000 $ 45,800 $ 105,000 46,000 59,200 Required 3 Required 4
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started