Problem 6-4AA 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

Units Acquired at Cost

Units Sold at Retail

Jan.

1

Beginning inventory

790

units

@ $85.00 per unit

Feb.

10

Purchase

495

units

@ $82.00 per unit

Mar.

13

Purchase

295

units

@ $67.00 per unit

Mar.

15

Sales

895

units

@ $115.00 per unit

Aug.

21

Purchase

290

units

@ $90.00 per unit

Sept.

5

Purchase

690

units

@ $86.00 per unit

Sept.

10

Sales

1,060

units

@ $115.00 per unit

Totals

2,560

units

1,955

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 790 units from beginning inventory, 205 from the February 10 purchase, 295 from the March 13 purchase, 145 from the August 21 purchase, and 520 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.) 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.)