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

Montoure Company uses a perpetual inventory system. It entered into the following calendar-year 2013 purchases and sales transactions.

Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 600 units @ $ 60 /unit Feb. 10 Purchase 480 units @ $ 57 /unit Mar. 13 Purchase 120 units @ $ 42 /unit Mar. 15 Sales 785 units @ $ 80 /unit Aug. 21 Purchase 180 units @ $ 65 /unit Sept. 5 Purchase 470 units @ $ 63 /unit Sept. 10 Sales 650 units @ $ 80 /unit

Totals 1,850units 1435 units

1. 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. (Round your average cost per unit to 2 decimal places.)

2. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places.)