Problem 5-4AA Periodic: Alternative cost flows LO P3 Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. Date Activities Jan. 1 Beginning inventory Feb. 10 Purchase Units Acquired at Cost 670 units @ $70.00 per unit 435 units @ $67.00 per unit 235 units @ $52.00 per unit Units Sold at Retail Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Totals 835 units @ $100.00 per unit 170 units @ $75.00 per unit 570 units @ $71.00 per unit 2,080 units 740 units @ $100.00 per unit 1,575 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. (d) weighted average, and (d) specific identification. For specific identification units sold consist of 670 units from beginning inventory, 265 from the February 10 purchase, 235 from the March 13 purchase. 85 from the August 21 purchase, and 320 from the September 5 purchase. (Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount.) (a) FIFO (b) LIFO (c) Weighted average (d) Specific identification Ending Inventory 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. Round your final answers to the nearest whole dollar amount.) FIFO LIFO Weighted Average Specific Identification Sales Less Cost of goods sold Gross profit 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 O Weighted Average O Specific Identification