Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

unuulc lol Sale and the number of units available for sale 2. Compute the number of units in ending inventory 3. Compute the cost assigned

image text in transcribed

unuulc lol 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. (Round all amounts to cents.) 4. Compute gross profit earned by the company for each of the four costing methods in part 3 Probierm 6-3A Perpetual: Alternative cost flows Montoure Co chases and sales transactions. (For specific identification, units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 200 from the March 13 purchase, 50 from the August 21 purchase, and 250 from the September 5 purchase.) mpany uses a perpetual inventory system. It entered into the following calendar-year p ur- Date Activities Units Acquired at Cost Units Sold at Retail Cof Jan. 1 Beginning inventory Feb. 10 Purchase. Mar. 13 Purchase. Mar. 15 Sales Aug. 21 Purchase... Sept. 5 Purchase Sept. 10 Sales 600 units@ $45.00 per unit 400 units @$42.00 per unit 200 units$27.00 per unit 800 units@ $75.00 per unit 100 units $50.00 per unit 500 units@ $46.00 per unit 600 units $75.00 per unit 1,400 units Totals 1,800 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 Check (3) Ending inventory 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and FIFO, $18,400; LIFGO $18,000; WA, $17,760 (d) specific identification. (Round all amounts to cents.) 4. Compute gross profit earned by the company for each of the four costing methods in part 3. Analysis Component 5. If the company's manager earns a bonus based on a percent of gross profit, which method of inventory (4) LIFO gross profit $45,800 costing will the manager likely prefer? Refer to the information in Problem 6-3A and assume the periodic inventory system is used. Problem 6-4A Perindic: Alternative

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of External Auditing

Authors: Brenda Porter, Jon Simon, David Hatherly

4th Edition

0470974451, 9780470974452

More Books

Students also viewed these Accounting questions

Question

Will formal performance reviews become obsolete? Why or why not?

Answered: 1 week ago