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

Jan.

1

Beginning inventory

600

units

@ $45 per unit

Feb.

10

Purchase

400

units

@ $42 per unit

Mar.

13

Purchase

200

units

@ $27 per unit

Mar.

15

Sales

800

units

@ $75 per unit

Aug.

21

Purchase

100

units

@ $50 per unit

Sept.

5

Purchase

500

units

@ $46 per unit

Sept.

10

Sales

600

units

@ $75 per unit

Totals

1,800

units

1,400

units

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. (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.)

Perpetual FIFO: Goode Purchased # of Cost unite Coat of Goods Sold Cost per unit Cost of Gooda Sold # of unite sold Date Inventory Balance #of units Cost Inventory per unit Balance 600 S 45.00 = $ 27,000.00 per unit Jan 1 Feb 10 Mar 13 . + Mar 15 ces Aug 21 Sept 5 Sept 10 Totals Perpetual FIFO Perpetual LIFO > 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 5. The company's mansger earns a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager? O FIFO OLIFO Specific Identification