Problem 5-3A Perpetual: Alternative cost flows LO P1

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

680

units

@ $40 per unit

Feb.

10

Purchase

320

units

@ $35 per unit

Mar.

13

Purchase

100

units

@ $23 per unit

Mar.

15

Sales

720

units

@ $75 per unit

Aug.

21

Purchase

130

units

@ $45 per unit

Sept.

5

Purchase

490

units

@ $41 per unit

Sept.

10

Sales

640

units

@ $75 per unit

Totals

1,720

units

1,360

units

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 680 units from beginning inventory, 240 from the February 10 purchase, 100 from the March 13 purchase, 80 from the August 21 purchase, and 260 from the September 5 purchase. (Round your average cost per unit to 2 decimal places.)

Required: 1. Compute cost of goods available for sale and the number of units available for sale. $ Cost of goods available for sale 75 Number of units available for sale 1,360 units 2. Compute the number of units in ending inventory. Ending inventory 360 units Perpetual FIFO Goods Purchased Cost of Goods Sold Inventory Balance # of units sold Cost per Cost of Goods Sold unit # of units Cost per unit Cost per unit Inventory Balance Date # of units 680@ $ 27,200.00 Jan 1 40.00 320 35.00 Feb 10 40.00 35.00 Mar 13 Mar 15 Aug 21 Sept 5 Sept 10 Totals $ 0.00 0.00 Perpetual LIFO: Inventory Balance Goods Purchased Cost of Goods Sold #of units Cost per unit Cost per unit Cost per unit # of units Cost of Goods Inventory Balance Date #of units sold Sold $40.00 Jan 1 680 27,200.00 Feb 10 Mar 13 Mar 15 Aug 21 Sept 5 Sept 10 0 Totals 0.00 Weighted Average Perpetual: Goods Purchased Cost of Goods Sold Inventory Balance Cost per cost of Goods Sold Inventory Balance Cost per unit Cost per unit # of units # of units sold # of units Date unit Jan 1 $40.00 $27,200.00 680 Feb 10 Average Mar 13 Mar 15 Aug 21 Average Sept 5 Sept 10 $ Totals 0.00 SpecITIc Iaentitication: Cost of Goods Sold Goods Purchased Inventory Balance Cost per #of units Cost per #of units Cost of Goods Sold Cost per Inventory Balance # of units Date unit sold unit unit $40.00 January 1 680 27,200.00 February 10 March 13 March 15 Aug 21 Sep 5 Sep 10 $ Totals 0.00 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 Specific Identification LIFO FIFO Sales Less: Cost of goods sold Gross profit 0 0