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 Sold at Retail Jan. 3 Beginning inventory Units Required at cost 660 units $35 per unit 330 units $32 per unit 110 units @ $20 per unit 760 unito e $75 per unit Seb. 10 purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Totals 180 units $40 per unit 570 units 536 per unit 250 unitse 875 per unit 1.510 units 1,850 units Required: 1. Compute cost of goods available for sale and the number of units available for sale Cont of goods available for sale Number of units available for sale units 2. Compute the number of units in ending inventory Ending inventory 3. Compute the cost assigned to ending Inventory using (a) FIFO. (D) LIFO, a welghted average, and () specific identification. For specific identification, units sold consist of 660 units from beginning inventory 230 from the February 10 purchase, 110 from the March 13 purchase, 130 from the August 21 purchase, and 380 from the September 5 purchase. Complete this question by entering your answers in the tabs below. Weighted Average Specific id Perpetual FIFO Perpetual LIFO Compute the cost assigned to ending inventory using specific identification. For specific identification, units sold consist of 660 units from beginning Inventory, 230 from the February 10 purchase, 110 from the March 13 purchase, 130 from the August 21 purchase, and 380 from the September purchase. (Round your average cost per unit to 2 decimal places.) ces Specific identification Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units sold Cost per unit Cost of Cost per Goods # of units unit Available for Sale 660 $ 35,00 $ 27,000 Cost of Goods Sold #of units In ending inventory Cost per unit Ending Inventory 0 $ 35.00 $ 0 Beginning inventory Purchases Feb 10 230 $ 32.00 7,360 3,200 330 $ 32.00 110 $ 20.00 180 $ 40.00 100 $ 32.00 $ 20,00 March 13 0 0 16,800 5.400 5,000 23,000 $ 77,200 0 Aug 21 Sep 5 $ 40,00 570 $36.00 0 $ 35.00 0 Total 1.850 230 $ 7,360 100 $ 3.200 Perpetual FIFO Perpetual LIFP Weighted Average Specific Id Compute the cost assigned to ending inventory using LIFO. (Round your average cost per unit to 2 decimal places.) Perpetual LIFO: Goods Purchased Cost per # of units Dato Cost of Goods Sold #of units Cost per cost of Goods Sold sold unit Inventory Balance # of units Cost per Inventory unit Balance 660 @ $ 35.00 - $ 23,100.00 unit Jan 1 Feb 10 Mar 13 Mar 15 Aug 21 Sept5 Perpetual FIFO: Cost of Goods Sold Goods Purchased # of units unit Cost per Date #of units sold Cost per Cost of Goods Sold Inventory Balance Cost per Inventory # of units unit Balance 660 @ $ 35.00 = $ 23,100.00 unit Jan 1 Feb 10 Mer 13 Mar 15 Aug 21 Sept 5 Sept 10 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? O FIFO Weighted Average UFO Specific identification
