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Montoure Company uses a periodic Inventory system. It entered into the following calendar-year purchases and sales transactions. Units Sold at Retail Date January 1 February
Montoure Company uses a periodic Inventory system. It entered into the following calendar-year purchases and sales transactions. Units Sold at Retail Date January 1 February 10 March 13 March 15 August 21 September 5 September 10 Units Acquired at Cost 675 units @ $45.ee per unit 550 units e $42.ee per unit 275 units e $27.ee per unit Activities Beginning inventory Purchase Purchase Sales Purchase Purchase Sales Totals 1,188 units @ $75.ee per unit 175 units 575 units @ $50.00 per unit @ $46.ee per unit @ $75.ee per unit 750 units 1,856 units 2,250 units Required: 1. Compute cost of goods available for sale and the number of units available for sale. Cost of goods available for sale Number of units available for sale units 2 Compute the number of units in ending Inventory Ending inventory units 3. Compute the cost assigned to ending Inventory using (2) O.(6) LIFO. (Welghted average, and specific identification. For specific Identification, units sold consist of 675 units from beginning Inventory. 375 from the February 10 purchase. 275 from the March 13 purchase, 125 from the August 21 purchase, and 400 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.) Ending Inventory (a) FIFO (b) LIFO (c) Weighted average (d) Specific identification 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.) FIFO LIFO Weighted Average Specific Identification Sales Less: Cost of goods sold Gross profit 0 $ 0 $ 5 0 5. The company's manager eams a bonus based on a percent of gross profit. Which method of Inventory costing produces the highest bonus for the manager? OLIFO Weighted Average Specific Identification O FIFO
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