Question
Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold
Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions.
Date | Activities | Units Acquired at Cost | Units Sold at Retail | |||||||||
Jan. | 1 | Beginning inventory | 600 | units | @ $45 per unit | |||||||
Feb. | 10 | Purchase | 400 | units | @ $42 per unit | |||||||
Mar. | 13 | Purchase | 200 | units | @ $27 per unit | |||||||
Mar. | 15 | Sales | 800 | units | @ $75 per unit | |||||||
Aug. | 21 | Purchase | 100 | units | @ $50 per unit | |||||||
Sept. | 5 | Purchase | 500 | units | @ $46 per unit | |||||||
Sept. | 10 | Sales | 600 | units | @ $75 per unit | |||||||
Totals | 1,800 | units | 1,400 | units | ||||||||
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. Just need help with the weight average:
a)FIFO$18,400
(b)LIFO$18,000
(c)Weighted average ????
(d)Specific identification$18,200
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.)
FIFO LIFO Weighted Average Specific Identification
Sales $105,000 $105,000 $105,000 $105,000
Less: $58,800 $59,200 $???? $59,000
Gross profit $46,200 $45,800 $41,240 $46,000
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