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
January 1	Beginning inventory	600	units	@ $60 per unit
February 10	Purchase	480	units	@ $57 per unit
March 13	Purchase	120	units	@ $42 per unit
March 15	Sales				785	units	@ $80 per unit
August 21	Purchase	180	units	@ $65 per unit
September 5	Purchase	470	units	@ $63 per unit
September 10	Sales				650	units	@ $80 per unit
	Totals	1,850	units		1,435	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 600 units from beginning inventory, 380 from the February 10 purchase, 120 from the March 13 purchase, 130 from the August 21 purchase, and 205 from the September 5 purchase.)

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

Note: Round your average cost per unit to 2 decimal places.

5. The companys manager earns a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager?

multiple choice

FIFO

Specific Identification

LIFO

Weighted Average