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 Jan. 1 Beginning inventory 600 units $40 per unit Feb. 10 Purchase 400 units@ $37 per unit Mar. 13 Purchase 190 units@ $15 per unit Mar. 15 Sales 805 units@ $70 per unit Aug. 21 Purchase 190 units @ $45 per unit Sept. 5 Purchase 550 units @ $43 per unit Sept. 10 Sales 740 units @ $70 per unit Totals 1,930 units 1,545 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 antification For Perpetual FIFO: Goods Purchased # of Cost per units unit Date Cost of Goods Sold # of units sold unit Cost per cost of Goods Sold Inventory Balance # of units Cost per Inventory unit Balance 600 $ 40,00 - $ 24,000.00 Jan 1 Feb 10 Mar 13 Mar 15 es Aug 21 Sept 5 Sept 10 $ 0.00 $ 0.00 Totals Compute the cost assigned to ending inventory using LIPO. (Round your average cost per unit to 2 decimal places.) Perpetual LIFO: Goods Purchased Cost of Goods Sold Date #of Cost per # of units Cost per cost of Goods Sold units unit Inventory Balance Cost per Inventory # of units unit Balance 600 @ $40.00 - $ 24,000.00 sold unit Jan 1 Feb 10 Mar 13 es Mar 15 Aug 21 Sept 5 Sept 10 0 $ 0.00 Totals 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 Cost of Goods Sold Inventory Balance # of Cost per # of units Cost per Date Cost per unit Cost of Goods Sold Inventory units sold # of units unit unit Balance Jan 1 600 @ $ 40.00 = $ 24,000.00 Feb 10 Average Mar 13 Mar 15 Aug 21 Average Sept 5 Sept 10 Totals 0.00 Perpetual FIFO Perpetual LIFO Weighted Average Specific la Compute the cost assigned to ending inventory using specific identification. For specific identification, units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 190 from the March 13 purchase, 140 from the August 21 purchase, and 315 from the September 5 purchase. (Round your average cost per unit to 2 decimal places.) Cost of Goods Sold Ending Inventory # of units Cost per sold unit Cost of Goods Sold #of units in ending Inventory Cost per unit Ending Inventory 0 $ 40.00 $ 0 Specific Identification Cost of Goods Available for Sale Cost of # of units Cost per Goods unit Available for Sale Beginning inventory 600 $ 40.00 $ 27,000 Purchases: Feb 10 400 $ 37.00 16,800 March 13 190 $ 15.00 5.400 Aug 21 190 $ 45.00 5,000 Sep 5 550 $ 43.00 23,000 Total 1,930 $ 77,200 300 $ 37.00 11,100 0 3,700 0 100 $ 37.00 $ 15,00 $ 45.00 $ 43,00 0 0 0 0 100 $ 11,100 $ 3.700 300 ( Weighted Average 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 $ 0 on a percent of gross profit. Which method of inventory costing produces the highest 5. The company's manager earns a bonus bonus for the manager? FIFO Weighted Average LIFO Specific Identification
