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Montoure Company uses a perpetual inventory system. It entered into the following calendar - year purchases and sales transactions. Date Activities Units Acquired at Cost

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 600 units @ $45 per unit
February 10 Purchase 400 units @ $42 per unit
March 13 Purchase 200 units @ $27 per unit
March 15 Sales 800 units @ $75 per unit
August 21 Purchase 100 units @ $50 per unit
September 5 Purchase 500 units @ $46 per unit
September 10 Sales 600 units @ $75 per unit
Totals 1,800 units 1,400 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 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.)
Compute gross profit earned by the company for each of the four costing methods.
Note: Round your average cost per unit to 2 decimal places.
The companys manager earns a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager?
multiple choice
Weighted Average
LIFO
FIFO
Specific Identification

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