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In: Accounting

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

Montoure Company uses a perpetual 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 600 units @ $60 per unit
Feb. 10 Purchase 480 units @ $57 per unit
Mar. 13 Purchase 120 units @ $42 per unit
Mar. 15 Sales 785 units @ $80 per unit
Aug. 21 Purchase 180 units @ $65 per unit
Sept. 5 Purchase 470 units @ $63 per unit
Sept. 10 Sales 650 units @ $80 per unit
Totals 1,850 units 1,435 units

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 600 units from beginning inventory, 380 from the February 10 purchase, 120 from the March 13 purchase, 130 from the August 21 purchase, and 205 from the September 5 purchase. (Round your average cost per unit to 2 decimal places.)

Compute gross profit earned by the company for each of the four costing methods

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Expert Solution

ekkarill92 answered 7 months ago
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