Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need assistance Montoure Company uses a periodic inventory system. It entered into the following calendar-year 2015 purchases and sales transactions. Acquired at Cost Units Sold
Need assistance
Montoure Company uses a periodic inventory system. It entered into the following calendar-year 2015 purchases and sales transactions. Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 700 units $40.00 per unit Feb. 10 Purchase 450 units S37.00 per unit Mar. 13 250 units S22.00 per unit Mar. 15 Sales 850 units a S70.00 per unit Aug. 21 Purchase 200 units $45.00 per unit Sept. 5 Purchase Sept. 10 600 units S41.00 per unit 800 units@ S70.00 per unit Totals 2,200 units. 1.850 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 5ale lunit5 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 700 units from beginning inventory, 250 from the February 10 purchase, 250 from the March 13 purchase, 100 from the August 21 purchase, and 350 from the September 5 purchase. (Round your average cost per unit to 2 decimal places.) Ending Inventory (a) FIF (b) LIFO (c) Weighted average (d) Specific identification 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.) Weighted Average Identification Sales Less: Cost of goods sold Gross profitStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started