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 Units Sold at Retail Units Acquired at Cost 680 units @ $40 per unit 320 units @ $35 per unit 100 units @ $23 per unit Date Activities Jan. 1 Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Totals 720 units @ $75 per unit 130 units @ $45 per unit 490 units @ $41 per unit 620 units @ $75 per unit 1,340 units 1,720 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 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. Complete this question by entering your answers in the tabs below. Perpetual FIFO Perpetual LIFO Weighted Average Specific Id Perpetual FIFO: Goods Purchased # of Cost per units unit # of units Cost of Goods Sold Cost per Cost of Goods Sold unit Date Inventory Balance Cost per Inventory # of units unit Balance 680 @ $ 40.00 = $ 27,200.00 Sold Jan 1 Feb 10 Mar 13 Mar 15 Aug 21 Sept 5 Sept 10 Totals $ 0.00 $ 0.00 Perpetual LIFO: Goods Purchased Cost of Goods Sold Inventory Balance # of units Date # of units Cost per unit Cost per cost of Goods Sold unit # of units Cost per unit sold Inventory Balance $ 27,200.00 Jan 1 680 @ $ 40.00 = 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 Cost per Cost per Date # of units # of units sold Cost per Cost of Goods Sold unit Inventory Balance Inventory # of units unit Balance 680 @ $ 40.00 = $ 27,200.00 unit Jan 1 Feb 10 Average Mar 13 Mar 15 Aug 21 Average Sept 5 Sept 10 Totals $ 0.00 Goods Purchased Cost of Goods Sold Inventory Balance Cost per Date # of units # of units sold Cost per Cost of Goods Sold unit # of units unit Cost per unit Inventory Balance $ 40.00 = $ 27,200.00 680 @ January 1 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.) FIFO LIFO Weighted Average Specific Identification Sales Less: Cost of goods sold Gross profit $ 0 $ 0 $ 0 $ 0 5. The company's manager earns a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager? OLIFO O FIFO OLIFO O Specific Identification