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. January 1 Beginning Inventory 600 units at

Montoure company uses a perpetual inventory system. It entered into the following calendar year purchases and sales transactions.

January 1 Beginning Inventory 600 units at $60 per unit. February 10 Purchase 400 at $57 per unit. March 13 Purchase 150 at $45 per unit. March 15 Sales 750 at $85 per unit. August 21 purchase 150 at $65 per unit. September 5 Purchase 450 units at $61 per unit. September 10 Sales 600 units at $85 per unit. Total units acquired at cost is 1750. Total units sold at retail is 1350.

1. Compute the cost assigned to ending inventory using a)FIFO b)LIFO c)weighted average d)specific identification. For specific identification , units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 150 from March 13 purchase, 100 from August 21 purchase, and 200 from September 5 purchase.

2. Compute gross profit earned by the company for each of the four costing methods

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Contemporary Auditing Issues And Cases

Authors: Michael Chris Knapp

3rd Edition

0538891173, 9780538891172

More Books

Students also viewed these Accounting questions

Question

119. If X is uniformly distributed on [1, 1], find the pdf of Y X2.

Answered: 1 week ago

Question

List the advantages and disadvantages of the pay programs. page 536

Answered: 1 week ago