QUESTI0N2

Perpetual inventory record

2. Abigaelle Dorsainvils House of Fashions uses a perpetual inventory system. It entered into the following calendar-year 2021 purchases and sales transactions:

Jan. 1 Beginning inventory April 1 Purchase

April 5 Sales

July 7 Purchase Aug12 Purchase

600 units @ $40/unit 750 units @ $48/unit

300 units @ $42/unit 400 units @ $50/unit

500 units @ $80/unit

Sept. 2 Sales 650 units @ $80/unit

Totals

2050 units

1150 units

Required:

Compute cost of goods available for sale and the number

of units available for sale.

Compute the number of units remaining in ending inventory.

Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) Weighted Average (round per unit cost to a cent and inventory balances to the dollar) and (d) Specific Identification. For Specific Identification, the following units were sold - 500 units from beginning inventory, 500 units from the April 1 purchase, and 150 units from the August 12 purchase.

Compute the gross profit earned by the company for each of the costing methods in part 3.