Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. (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.) Units Sold at Retail Units Acquired at Cost 600 units @ $45.00 per unit 400 units @ $42.00 per unit 200 units @ $27.00 per unit Date Activities Jan. 1 Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sep. 5 Purchase Sep. 10 Sales Totals 800 units @ $75.00 per unit 100 units @ $50.00 per unit 500 units @ $46.00 per unit 600 units @ $75.00 per unit 1,400 units 1,800 units Problem 5-4AA Perpetual: Alternative cost flows P3Q Refer to the information in Problem 5-3A and assume the perpetual inventory system is used. 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. (Round all amounts to cents.) Check (3) Ending inventory: FIFO, $18,400; LIFO, $18,000; WA, $17,760 4. Compute gross profit earned by the company for each of the four costing methods in part 3. (4) LIFO gross profit, $45,800 Analysis Component 5. If the company's manager earns a bonus based on a percentage of gross profit, which method of inventory costing will the manager likely prefer? Page 252