Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions Units Sold at Retail Units Acquired at Cost 600 units @ $40 per unit 400 units @ $37 per unit 190 units @ $15 per unit Date Activities Jan. 1 Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Totals 805 units @ $70 per unit 190 units @ $45 per unit 550 units @ $43 per unit 740 units @ $70 per unit 1,545 units 1,930 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 (a) FIFO, (b) LIFO, (C) weighted average, and (c) specific identification. For specific identification, units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 190 from the March 13 purchase, 140 from the August 21 purchase, and 315 from the September 5 purchase. Perpetual FIFO: Goods Purchased # of units unit Cost per Cost of Goods Sold # of units sold unit Date Cost per cost of Goods Sold Inventory Balance Cost per Inventory # of units unit Balance 600 @ $ 40.00 = $ 24,000.00 Jan 1 Feb 10 Mar 13 Mar 15 Aug 21 Sept 5 Sept 10 Totals $ 0.00 $ 0.00 Perpetual LIFO: Goods Purchased Cost of Goods Sold Inventory Balance Cost per Date # of units # of units sold Cost per Cost of Goods Sold unit # of units unit Cost per unit $ 40.00 Inventory Balance $ 24,000.00 Jan 1 600 @ Feb 10 Mar 13 Mar 15 Aug 21 Sept 5 Sept 10 0 Totals $ 0.00 Weighted Average Perpetual: Goods Purchased # of Date units unit Jan 1 Cost per # of units sold Cost of Goods Sold Cost per Cost of Goods Sold unit Inventory Balance Cost per Inventory # of units unit Balance 600 @ $ 40.00 $ 24,000.00 Feb 10 Average Mar 13 Mar 15 Aug 21 Average Sept 5 Sept 10 Totals $ 0.00 Specific Identification: Goods Purchased Cost of Goods Sold # of units Date # of units Cost per unit Cost per cost of Goods Sold unit Inventory Balance Cost per Inventory # of units Balance 600 @ $ 40.00 = $ 24,000.00 sold unit January 1 February 10 March 13 March 15 Aug 21 Sep 5 Sep 10 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.) FIFO LIFO Weighted Average Specific Identification Sales Less: Cost of goods sold Gross profit $ 0 $ 0 $ 0 $ 5. The company's manager earns a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager? FIFO Specific Identification Weighted Average OLIFO