Question

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.)

Answer 1