Problem 5-3B

page 238 Problem 5-3B Perpetual: Alternative cost flows P1 Aloha Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. (For specific identification, units sold consist of 80 units from beginning inventory, 300 units from the May 6 purchase, and 100 units from the May 25 purchase.) Units Sold at Retai Activities Beginning inventory.... Purchase Units Acquired at Cost 150 units a $300 per unit 350 units a $350 per unit Date May 1 May 6 May 9 May 17 May 25 May 30 Sales 180 units a $1,200 per unit Purchase Purchase Sales Total 80 units $450 per unit 100 units a $458 per unit 300 units 51,400 per unit 480 units 680 units Required 1. Compute cost of goods available for sale and the number of units available for sale. 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. (Round all amounts to cents.) 4. Compute gross profit earned by the company for each of the four costing methods in part 3. Analysis Component 5. If the company's manager carns a bonus based on a percent of gross profit, which method of inventory costing will the manager likely prefer