Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Montoure Company uses a perpetual inventory system. It entered into the following calendar-year 2015 purchases and sales transactions. Jan. 1. Beginning inventory 660 units at

Montoure Company uses a perpetual inventory system. It entered into the following calendar-year 2015 purchases and sales transactions.

Jan. 1. Beginning inventory 660 units at $ 55 per unit

Feb. 10. Purchase 330 units at $ 52 per unit

Mar. 13. Purchase 110 units at $ 40 per unit

Mar. 15. Sales 780 units at $ 75 per unit

Aug. 21. Purchase 140 units at $ 60 per unit

Sept. 5. Purchase 420 units at $ 56 per unit

Sept. 10. Sales 560 units at $ 75 per unit

Totals 1,660 units 1,340 units

3. 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, 90 from the August 21 purchase, and 250 from the September 5 purchase. (Round your average cost per unit to 2 decimal places.) Then, compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions