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	570	units	@ $50 per unit
February 10	Purchase	380	units	@ $47 per unit
March 13	Purchase	190	units	@ $35 per unit
March 15	Sales				700	units	@ $75 per unit
August 21	Purchase	200	units	@ $55 per unit
September 5	Purchase	590	units	@ $53 per unit
September 10	Sales				790	units	@ $75 per unit
	Totals	1,930	units		1,490	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 570 units from beginning inventory, 280 from the February 10 purchase, 190 from the March 13 purchase, 150 from the August 21 purchase, and 300 from the September 5 purchase.)

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.)

5. 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

Specific Identification

Weighted Average

LIFO

FIFO

rev: 05_22_2021_QC_CDR-376, 06_14_2021_QC_CDR-376