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	650	units	@ $45.00 per unit
February 10	Purchase	500	units	@ $42.00 per unit
March 13	Purchase	250	units	@ $27.00 per unit
March 15	Sales				1,000	units	@ $75.00 per unit
August 21	Purchase	150	units	@ $50.00 per unit
September 5	Purchase	550	units	@ $46.00 per unit
September 10	Sales				700	units	@ $75.00 per unit
	Totals	2,100	units		1,700	units

Required:

Compute cost of goods available for sale and the number of units available for sale.

Compute the number of units in ending inventory.

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 650 units from beginning inventory, 350 from the February 10 purchase, 250 from the March 13 purchase, 100 from the August 21 purchase, and 350 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.

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

1. multiple choice

LIFO

FIFO

Weighted Average

Specific Identification