Question
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 Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 660 units @ $60 per unit Feb. 10 Purchase 330 units @ $57 per unit Mar. 13 Purchase 110 units @ $45 per unit Mar. 15 Sales 715 units @ $70 per unit Aug. 21 Purchase 160 units @ $65 per unit Sept. 5 Purchase 570 units @ $61 per unit Sept. 10 Sales 730 units @ $70 per unit Totals 1,830 units 1,445 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 660 units from beginning inventory, 230 from the February 10 purchase, 110 from the March 13 purchase, 110 from the August 21 purchase, and 335 from the September 5 purchase. (Round your average cost per unit to 2 decimal places.) 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.)
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