Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions.

DateActivitiesUnits Acquired at CostUnits

Jan.1Beginning inventory720units@ $50.00 per unit

Feb.10Purchase460units@ $47.00 per unit

Mar.13Purchase260units@ $32.00 per unit

Mar.15Sales860units@ $80.00 per unit

Aug.21Purchase220units@ $55.00 per unit

Sept.5Purchase620units@ $51.00 per unit

Sept.10Sales920units@ $80.00 per unit

Totals 2,280units 1,780units

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 720 units from beginning inventory, 240 from the February 10 purchase, 260 from the March 13 purchase, 110 from the August 21 purchase, and 450 from the September 5 purchase.(Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount.)

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. Round your final answers to the nearest whole dollar amount.)

5.The company's manager earns a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager?

• LIFO
• Weighted Average
• FIFO
• Specific Identification