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 | ||||
---|---|---|---|---|---|---|---|
January 1 | Beginning inventory | 700 | units | @ $45.00 per unit | |||
February 10 | Purchase | 600 | units | @ $42.00 per unit | |||
March 13 | Purchase | 300 | units | @ $27.00 per unit | |||
March 15 | Sales | 1,200 | units | @ $75.00 per unit | |||
August 21 | Purchase | 200 | units | @ $50.00 per unit | |||
September 5 | Purchase | 600 | units | @ $46.00 per unit | |||
September 10 | Sales | 800 | units | @ $75.00 per unit | |||
Totals | 2,400 | units | 2,000 | 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 700 units from beginning inventory, 400 from the February 10 purchase, 300 from the March 13 purchase, 150 from the August 21 purchase, and 450 from the September 5 purchase.
Note: Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount.
Compute gross profit earned by the company for each of the four costing methods.
Note: Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount.
March 13 purchase, 150 from the August 21 purchase, and 450 from the September 5 purchase. Note: Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount. Compute gross profit earned by the company for each of the four costing methods. Note: Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount
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