Problem 6-4AA Periodic: Alternative cost flows LO P3

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 Units Sold at Retail Units Acquired at Cost 650 units @ $60.00 per unit 425 units @ $57.00 per unit 225 units @ $42.00 per unit Date Activities Jan. 1 Beginning inventory Feb 10 Purchase Mar 13 Purchase Mar 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Totals 825 units@ $90.ee per unit 150 units @ $65.00 per unit 550 units @ $61.00 per unit 2,000 units 700 units $90.00 per unit 1,525 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 (5) LIFO. ( weighted average, and (c) specific identification. For specific identification units sold consist of 650 units from beginning inventory, 275 from the February 10 purchase, 225 from the March 13 purchase, 75 from the August 21 purchase, and 300 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.) Ending Inventory (a) FIFO (b) LIFO (c) Weighted average (d) Specific identification Check my w 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 $ 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 Specific Identification LIFO