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Problem 6-4AA Periodic: Alternative cost flows LO P1 Montoure Company uses a periodic inventory system. It entered into the following calendar-year 2015 purchases and sales

Problem 6-4AA Periodic: Alternative cost flows LO P1

Montoure Company uses a periodic inventory system. It entered into the following calendar-year 2015 purchases and sales transactions.

Date Activities Units Acquired at Cost Units Sold at Retail
Jan. 1 Beginning inventory 710 units @ $45.00 per unit
Feb. 10 Purchase 455 units @ $42.00 per unit
Mar. 13 Purchase 255 units @ $27.00 per unit
Mar. 15 Sales 855 units @ $75.00 per unit
Aug. 21 Purchase 210 units @ $50.00 per unit
Sept. 5 Purchase 610 units @ $46.00 per unit
Sept. 10 Sales 900 units @ $75.00 per unit
Totals 2,240 units 1,755 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. For specific identification units sold consist of 710 units from beginning inventory, 245 from the February 10 purchase, 255 from the March 13 purchase, 105 from the August 21 purchase, and 440 from the September 5 purchase. (Round your average cost per unit to 2 decimal places.)

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.)

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