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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 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

Date

Jan.

1

Beginning inventory 620 units @ $45 per unit
Feb. 10 Purchase 380 units @ $42 per unit
Mar. 13 Purchase 100 units @ $30 per unit
Mar. 15 Sales 735 units @ $70 per unit
Aug. 21 Purchase 170 units @ $50 per unit
Sept. 5 Purchase 400 units @ $46 per unit
Sept. 10 Sales 570 units @ $70 per unit
Totals 1,670 units 1,305 units

Required: 1. Compute cost of goods available for sale and the number of units available for sale.

Cost of goods available for sales

Number of units available for sales

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 (d) specific identification. For specific identification, units sold consist of 620 units from beginning inventory, 280 from the February 10 purchase, 100 from the March 13 purchase, 120 from the August 21 purchase, and 185 from the September 5 purchase. (Round your average cost per unit to 2 decimal places.)

Ending Inventory

(a)

FIFO

(b)

LIFO

(c)

Weighted average

(d)

Specific Identification

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

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