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 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.

DateActivitiesUnits Acquired at CostUnits Sold at Retail
Jan.1Beginning inventory600units@ $45 per unit
Feb.10Purchase400units@ $42 per unit
Mar.13Purchase200units@ $27 per unit
Mar.15Sales800units@ $75 per unit
Aug.21Purchase100units@ $50 per unit
Sept.5Purchase500units@ $46 per unit
Sept.10Sales600units@ $75 per unit
Totals1,800units1,400units


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

student submitted image, transcription available below
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. (Round your average cost per unit to 2 decimal places.)
image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed
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.)

student submitted image, transcription available below
 
 
 


 

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To calculate the cost of goods sold for Montoure Company using a perpetual inventory system based ... 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

Financial Accounting with IFRS Fold Out Primer

Authors: John Wild

5th edition

978-0077408770, 77408772, 978-0077413804

More Books

Students also viewed these Accounting questions