Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions Units Sold at Retail Units Acquired at Cost 660 units @ $55 per unit 330 units @ $52 per unit 110 units @ $40 per unit Date Activities Jan. 1 Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Totals 780 units @ $75 per unit 140 units @ $60 per unit 420 units @ $56 per unit 560 units@ $75 per unit 1,340 units 1,660 units Required: 1. Compute cost of goods available for sale and the number of units available for sale. Cost of goods available for sale Number of units available for sale 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 660 units from beginning inventory, 230 from the February 10 purchase, 110 from the March 13 purchase, 90 from the August 21 purchase, and 250 from the September 5 purchase. Complete this question by entering your answers in the tabs below. Perpetual FIFO Perpetual LIFO Weighted Average Specific Id Perpetual FIFO: Goods Purchased # of Cost per units unit Cost of Goods Sold # of units sold unit Date Cost per cost of Goods Sold Inventory Balance Cost per # of units Inventory unit Balance 660 @ $ 55.00 S 36,300.00 Jan 1 Feb 10 Mar 13 Mar 15 Aug 21 Sept 5 Sept 10 Totals $ 0.00 S 0.00 Perpetual LIFO: Goods Purchased Cost of Goods Sold Date # of units Cost per unit # of units sold Cost per cost of Goods Sold unit Inventory Balance Inventory # of units Cost per unit Balance 660 @ $ 55.00 $ 36,300.00 Jan 1 = Feb 10 Mar 13 Mar 15 Aug 21 Sept 5 Sept 10 0 Totals $ 0.00 Perpetual FIFO Perpetual LIFO Weighted Average Specific Id Compute the cost assigned to ending inventory using weighted average. (Round your average cost per unit to 2 decimal places.) Weighted Average Perpetual: Goods Purchased # of Date units unit Jan 1 Cost per # of units sold Cost of Goods Sold Cost per Cost of Goods Sold unit Inventory Balance Cost per # of units Inventory unit Balance 660 @ $ 55.00 = $36,300.00 Feb 10 Average Mar 13 Mar 15 Aug 21 Average Sept 5 Sept 10 Totals $ 0.00 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 $ 0 $ 0 $ 0 $ 5. The company's manager earns a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager? Weighted Average OLIFO Specific Identification FIFO
