Question
Montoure Company uses a perpetual 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 perpetual 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 660 units @ $35 per unit February 10 Purchase 330 units @ $32 per unit March 13 Purchase 110 units @ $20 per unit March 15 Sales 760 units @ $75 per unit August 21 Purchase 180 units @ $40 per unit September 5 Purchase 570 units @ $36 per unit September 10
September 10 | Sales | 750 | units | @ $75 per unit | |||
---|---|---|---|---|---|---|---|
Totals | 1,850 | units | 1,510 | 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 660 units from beginning inventory, 230 from the February 10 purchase, 110 from the March 13 purchase, 130 from the August 21 purchase, and 380 from the September 5 purchase.)
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